Seasonally adjusted means that figures have been modified to remove the effects of regular and predictable changes that happen at specific times of the year, such as holidays or weather patterns. This adjustment helps reveal the true underlying trend by making comparisons across different periods more accurate. For investors, it provides a clearer picture of whether economic activity is genuinely improving or declining, without the noise of seasonal fluctuations.
redfin home price index (rhpi)technical
The Redfin Home Price Index (RHPI) is a widely followed measure of how U.S. home sale prices are changing over time, calculated from actual residential transactions recorded by Redfin. Investors watch it as a near-real-time gauge of housing market strength—like a thermometer for home prices—because shifts in the index can signal changes in demand, lending conditions, and economic confidence that affect real-estate investments, mortgage-related securities, and broader market sentiment.
repeat-sales pricing methodtechnical
A repeat-sales pricing method measures price change by tracking the same item or asset each time it is sold, rather than comparing different items sold at different times. Like watching the resale price of the same car over years instead of averaging prices of different cars, it isolates true market movements from differences in quality or features, so investors get a clearer signal of underlying price trends and inflation for that asset class.
Redfin reports home prices rose 0.1% month over month on a seasonally adjusted basis—the slowest growth in seven months
SEATTLE--(BUSINESS WIRE)--
U.S. home prices were little changed from a month earlier in February, rising 0.1% on a seasonally adjusted basis—the slowest growth in seven months. That’s according to a new report by Redfin, the real estate brokerage powered by Rocket.
Prices increased 1.9% year over year. This is according to the Redfin Home Price Index (RHPI), which uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes. The RHPI measures sale prices of homes that sold during a given period, and how those prices have changed since the last time those same homes sold.
Strong buyer’s market slows home price growth
Price growth is muted because it’s the strongest buyer’s market in recent history—for those who can afford to buy. There are a record 46% more home sellers than buyers, meaning the buyers who are in the market have negotiating power when it comes to price. Prices are still rising slightly, but this growth pales in comparison to recent years; during the pandemic, prices rose as much as 21% year over year and as much as 1.9% during a single month.
“Mortgage rates have ticked up in the past few weeks following months of declines, but we still expect housing affordability to improve this year as income growth outpaces home price growth,” said Redfin Principal Economist Sheharyar Bokhari. “Homebuyers in many markets are having success asking for discounts and other concessions, and they have the luxury of time because they aren’t facing much competition.”
Home prices are falling in 16 major metros
Home prices fell month over month in 16 of the 50 most populous U.S. metropolitan areas in February.
The biggest declines were in Jacksonville, FL (-4%), Providence, RI (-1.4%) and Columbus, OH (-1.1%). The biggest gains were in Charlotte, NC (3.7%), Portland, OR (2.1%) and West Palm Beach, FL (2.1%).
Prices also fell in 16 metros on a year-over-year basis, with the biggest declines in San Antonio (-5.1%), Jacksonville (-4.4%) and Minneapolis (-3.8%). The largest increases were in San Francisco (15.2%), Chicago (9.3%) and New York (9.2%).
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.
