New Redfin data reveals a diverging market — buyer power is rising while annual price growth picks up speed
US home prices grew 0.25% month over month on a seasonally adjusted basis in August, according to the Redfin Home Price Index (RHPI), easing slightly from 0.26% in July and 0.27% in June.
On an annual basis, prices climbed 3.7% from a year earlier, the fastest pace of year-over-year growth in 12 months.
The data covers the three months ending August 31, using a repeat-sales pricing methodology that tracks how sale prices change since a home's previous transaction.
The deceleration in monthly gains reflects a broader shift underway. August registered as the strongest buyer's market on record, with elevated housing costs and economic uncertainty keeping demand subdued even as the number of homes for sale continues to rise.
Monthly momentum fades as buyer power builds
Despite softer monthly readings, prices are not falling. Many homeowners carry substantial equity and face little pressure to accept steep discounts.
The luxury segment, particularly affluent buyers in Florida and San Francisco's technology-driven market, is providing additional support to the overall index.
"Slowing price growth is good news for buyers because it means waiting for the right home is less likely to come with a rapidly rising price tag," said Chen Zhao, head of economics at Redfin.
"Buyers can afford to be choosy and negotiate. Sellers should recognize that pricing too high in today's market could mean their home sits on the market — and they may eventually have to cut the price. Pricing realistically from the start is a good way to attract attention."
Kyle Schoenmaker of Rocket Pro says today's market requires brokers to stay curious, explore lending options, and find creative solutions for clients navigating affordability challenges.https://t.co/zenUg2h1JU
— Mortgage Professional America Magazine (@MPAMagazineUS) September 11, 2026
Regional divides: St. Louis surges, Texas stumbles
Metro-level results tell a more fractured story. St. Louis posted the largest month-over-month gain in August at 1.1%, followed by Pittsburgh at 1% and a cluster of cities — San Antonio, San Jose, and Baltimore — each up 0.9%.
At the other end, Austin and Charlotte each fell 0.7% month over month, the steepest declines among major metros. Both markets carry significantly more sellers than buyers.
Milwaukee, Warren (Michigan), and Fort Lauderdale each dropped between 0.5% and 0.6%.
Year-over-year figures show San Francisco leading all major metros at 12%, followed by West Palm Beach at 10.4% and Chicago at 9.2%.
Texas remains a persistent soft spot: Dallas posted the sharpest annual decline nationally at -1.4%, with Austin (-1%), Fort Worth (-0.7%), San Antonio (-0.4%), and Seattle (-0.1%) also in negative territory.
In those markets, sellers outnumber buyers by more than two to one, giving purchasers genuine pricing leverage.
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