Redfin reveals shift in home prices, housing market

When I bought my first home in 2022, house prices were skyrocketing. Mortgage rates were starting to inch up from their rock-bottom lows at the peak of the COVID-19 pandemic, and it seemed like everyone - including me - wanted to buy before rates got any higher. And this competition drove up home prices.

As a real estate and mortgage reporter, I understood that I was experiencing a housing market anomaly. As a homebuyer, though, I couldn't help but wonder if home prices would ever calm down.

Now I have my answer: Housing prices are much, much calmer than they were a few years ago. In fact, according to the real estate technology company Redfin, price growth has been slowing for over a year.

Redfin has released its March home price index (HPI) report. The report shows that in March, seasonally adjusted home prices only inched up by 0.1% month over month.

Year-over-year prices increased by just 1.7% - the slowest annual growth since 2012.

This data is from the Redfin Home Pricing Index (RHPI), which evaluates repeat sales of single-family homes to calculate seasonally-adjusted changes in housing prices. An update on its December index, the March RHPI now includes data from January 1 to March 31.

The Redfin HPI also shows that home price growth has been slowing since the beginning of 2025. So, why have property prices been sluggish for over a year, and what do the current costs mean for homebuyers in today's real estate market?

Redfin says the Iran war is slowing home price growth

Remember when I said home prices were surging when I bought in 2022 because there was so much home-buyer demand? Well, now the opposite is true. According to the Redfin report, home prices are stagnant due to a lack of demand.

This low demand can largely be attributed to the war in Iran. After the U.S. and Israel attacked Iran on Feb. 28, Freddie Mac data showed that the average 30-year fixed mortgage rate jumped from 5.98% to 6.38% by the end of March.

Mortgage rates increased again at the beginning of April, then ticked down for a couple of weeks. But keep in mind that the Redfin HPI only looks at data through March 31.

Related: Dave Ramsey's controversial message about home affordability

The conflict in the Middle East caused oil prices to increase. "Oil is a major component into a lot of different goods that consumers purchase, to the extent that the price of that goes up, it's going to create inflation," Jeff DerGurahian, loanDepot chief investment officer and head economist, previously told TheStreet.

"Inflation is one of the components that bond investors use in their valuation of bonds. So if inflation is higher, they're going to want a higher yield on their bonds, whether it's Treasurys or mortgage bonds," he continued.

Redfin's report states that these higher mortgage rates and uncertainty about where the Iran war is headed are pushing many would-be homebuyers to the sidelines. As a result, there is much less demand during this home-buying season than sellers would have hoped for.

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Home price trends depend on local markets

Redfin's report shows that national home prices haven't moved much month to month or year over year. However, real estate is a local issue. While this data gives good insights into big-picture housing market trends, the situation could be different depending on your state, city, or even neighborhood.

Redfin found that monthly property prices decreased in 13 of largest 50 U.S. metro areas. The cities with the most significant declines were Fort Worth, Texas; Austin; and Nashville. The largest annual decreases were in San Antonio; Jacksonville, Florida; and Austin.

More on real estate and the housing market:

• Zillow predicts home values, housing market change
• Experts send strong message about decreasing mortgage rates
• Fannie Mae predicts shift in mortgage rates, home prices

Other areas experienced bigger price increases than the national average. On a monthly bases, the most drastic inclines were in Pittsburgh; West Palm Beach, Florida; and Nassau County, New York.

Year over year, the largest price surge took place in San Francisco, which a Redfin report about San Francisco real estate found was largely due to the boom in AI-related jobs. Chicago and New York also saw bigger increases.

What homebuyers and sellers should take away from Redfin's report

The impact of flat home prices sounds simple: It's good for buyers, bad for sellers. Right? While this is partially true, there are nuances for both parties to consider.

• Home sellers are probably frustrated that prices are stagnant, but it isn't all bad news. "It's the start of a reset for the housing market as a whole, and may ultimately bring homebuying costs down enough to bring some house hunters back," said Chen Zhao, Redfin's head of economics research.
• For potential homebuyers who have put off getting a place due to relatively high mortgage rates, slow home price growth is probably reassuring. It could help offset the costs that come with these home loan rates.
• Are mortgage rates still making you nervous? By buying mortgage discount points, using a temporary rate buydown program, or applying for down payment assistance, you might still be able to afford to take advantage of the current market's flat home prices.

Related: Redfin reveals change in home sales, housing market

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This story was originally published April 23, 2026 at 7:07 AM.