Redfin: Home Prices Rise 3.8% Annually as September Sales Market Weakens

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In brief: U.S. single-family home prices increased 0.25% from August to September on a seasonally adjusted basis, according to Redfin’s repeat-sales Home Price Index. Prices rose 3.8% from a year earlier, the strongest annual gain since June 2025.

Redfin released the figures October 20 at 8 a.m. Eastern. The monthly increase followed a 0.21% rise in August. Prices rose in 34 of the 50 most populous metro areas in September, with Philadelphia and Pittsburgh posting the fastest monthly growth. Prices declined in 16 markets, led by Fort Worth.

Price strength alongside weak demand

The new figures contrast with WRE’s coverage of September’s sharp pending-sales decline. They are not directly contradictory: Redfin measures changes in prices for repeat-sale single-family properties, while the National Association of Realtors’ pending-sales index measures signed purchase contracts.

Redfin’s price measure can remain positive when fewer homes trade, particularly if listings remain scarce in some markets. The September data do not mean that every local housing market is appreciating or that homebuying affordability has improved.

For lenders and agents, the divergence complicates forecasts: weaker contract volume can pressure production even while price resilience sustains transaction values.