The U.S. real estate market recorded a slight increase in home prices during November, rising by 0.2% compared to the previous month, based on seasonally adjusted data. Despite this monthly uptick, the annual growth rate stood at 2.6%, marking its lowest level in more than a decade, down from 2.9% year-on-year growth in October. This suggests that the market is experiencing a clear slowdown, even though prices continue to edge higher.
According to the Redfin Home Price Index (RHPI), which relies on a repeat-sales methodology to track seasonal price changes, November’s data covers the three-month period ending on November 30, 2025. Notably, this index is released nearly a month ahead of the S&P CoreLogic Case-Shiller Index, making it an early indicator of shifts in the housing market.
As for major metropolitan areas, monthly home price declines were recorded in 11 key cities, most notably Charlotte (-0.9%), Austin (-0.6%), and Cincinnati (-0.6%). In contrast, other regions posted strong gains, including Pittsburgh (2.3%), Montgomery County (1.6%), and Chicago (1.3%). On an annual basis, Chicago achieved the highest year-over-year growth at 11%, followed by Pittsburgh (10.1%) and New York (9.5%). On the downside, Austin led the declines with a drop of -3.8%, followed by Dallas (-2.8%) and Oakland (-2.5%).
This slowdown may be attributed to a range of economic factors, including higher mortgage interest rates and broader economic uncertainty, both of which have weighed on buyer decision-making. These conditions have dampened demand, prompting many potential buyers to delay their purchases.
On the other hand, prices remain high enough to deter some buyers from entering the market altogether, which has also led many potential sellers to hold back from listing their properties, fearing they may not receive suitable offers.
According to Chen Zhao, Head of Economic Research at Redfin, the winter season typically brings a natural slowdown in growth. However, he believes that opportunities for buyers now appear better than they have been over the past decade. Despite ongoing price increases, buyers are gaining greater negotiating power and are more able to secure concessions from sellers.
Zhao expressed optimism regarding future factors that could improve housing affordability, noting that wages are expected to grow faster than home prices in 2026. This could create an opportunity for the market to regain momentum by improving purchasing power and narrowing the gap between incomes and home prices.
Ultimately, the current situation points to a housing market moving at a balanced pace, characterized by a noticeable slowdown alongside continued, albeit moderate, price growth. With anticipated improvements in certain economic and living conditions in the near future, this slowdown may serve as a prelude to a renewed recovery that provides structural support to the U.S. housing market.
