- U.S. home prices increased 0.2% from a month earlier in September on a seasonally adjusted basis.
- On a year-over-year basis, home prices rose 3%, the slowest rate recorded in Redfin Home Price Index (RHPI) data going back to 2012.
- San Diego (+1.7%) recorded the highest month-over-month price growth of the 50 most populous U.S. metros, while San Antonio posted the biggest drop (-0.6%).
U.S. home prices rose 0.2% from a month earlier in September on a seasonally adjusted basis.
Matching August’s 0.2% gain, it was the second consecutive month of positive monthly growth after prices were flat in July (0.0%).
On a year-over-year basis, prices were up 3%, marking the slowest annual increase in Redfin Home Price Index (RHPI) data going back to 2012. That’s down from 3.3% in August and well below the 5% to 6% growth rates seen early in the year.
This is according to the RHPI, which uses the repeat-sales pricing method to calculate seasonally adjusted changes in single-family home prices. It measures how sale prices of homes have changed since their previous sale, similar to the S&P Cotality Case-Shiller Home Price Indices, but is reported about a month earlier. September data covers the three months ending September 30, 2025. Read the full RHPI methodology here.
The latest data suggests that while price growth is no longer slowing, the market remains in a holding pattern. Elevated mortgage rates, high home prices and lingering economic uncertainty continue to weigh on demand, while a rebound in inventory is keeping further price gains in check.
“Prices are relatively flat because both buyers and sellers are cautious right now,” said Redfin Senior Economist Sheharyar Bokhari. “Buyers have more options than they did a year ago, but affordability remains stretched and many people are holding off on making major purchases because they’re worried about the economy and the possibility of losing their job. Sellers, meanwhile, have to price carefully, knowing that overreaching can lead to their home sitting on the market. The result is a market where prices are inching up slowly each month.”
Metro-Level Summary: Redfin Home Price Index, September 2025
Home prices fell in 18 of the 50 most populous U.S. metro areas on a seasonally adjusted basis in September, month over month. The biggest decline in September was in San Antonio, TX (-0.6%), followed by Los Angeles (-0.6%) and Las Vegas (-0.6%). Prices increased most in San Diego (1.7% month over month), Milwaukee (1.2%) and Providence, RI (0.8%).
On a year-over-year basis, prices in New York (9.4%) rose the most, followed by Milwaukee (9%) and Cleveland (8.8%). Prices fell the most in Austin, TX (-4.2% year over year), Tampa, FL (-4.1%), and Phoenix (-2.5%).
