August Property Prices See Fastest Annual Growth Rate in a Year

Nationwide residential property values increased by 0.25% in a month-to-month comparison during August following seasonal adjustment—representing a marginal decline from 0.26% recorded in July and 0.27% in June—as reported in a recent analysis by Redfin. Year-over-year, values appreciated by 3.7% in August, marking the most substantial annual expansion rate observed within the preceding twelve months.

This assessment derives from the Redfin Home Price Index (RHPI), which employs the repeat-sales valuation methodology to determine seasonally adjusted fluctuations in single-family residential property values. The RHPI evaluates the manner in which sale prices of residential properties have shifted relative to their preceding transactions. August figures encompass the quarterly period concluding on August 31, 2026.

Price appreciation decelerated modestly as purchasers progressively strengthen their negotiating position. August represented the most favorable buyer’s market conditions documented historically, whereas substantial housing expenditures and macroeconomic instability are constraining purchasing demand, notwithstanding the expansion in available housing inventory.

Nevertheless, the effect remains limited, and residential property values persist in their upward trajectory. This phenomenon is attributable in part to the reality that numerous property owners maintain considerable equity positions and demonstrate minimal willingness to accept substantial price reductions. The premium residential segment, particularly among affluent purchasers in Florida and San Francisco’s technology-driven real estate market, constitutes an additional mechanism sustaining price levels.

“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.”

Where Are Home Prices Falling the Most? And the Fastest?

During August, residential property values increased in approximately half of the nation’s fifty largest metro areas when comparing month-to-month figures on a seasonally adjusted basis.

St. Louis experienced the most substantial appreciation, with home values climbing 1.1% from the previous month. This was followed by Pittsburgh (1%), San Antonio (0.9%), San Jose, California (0.9%), and Baltimore (0.9%). The relatively moderate pricing in St. Louis continues to draw purchasers and sustain upward price momentum, while the robust market conditions in San Francisco are extending into the San Jose region.

The most significant price contractions occurred in Austin, Texas (-0.7% month-over-month) and Charlotte, NC (-0.7%). These were succeeded by Milwaukee (-0.6%), Warren, MI (-0.6%), and Fort Lauderdale, FL (-0.5%).

When examining year-over-year performance, San Francisco demonstrated the strongest annual growth in August, with values rising 12%. West Palm Beach, FL (10.4%), Chicago (9.2%), Nassau County, NY (8.1%), and Miami (8%) followed in succession. San Francisco and Nassau County represent two of merely five seller-dominated markets in the United States, generating competitive bidding scenarios and elevating property values.

Five major metropolitan areas experienced year-over-year price reductions, comprising four Texas markets and Seattle. Dallas registered the steepest decline at -1.4%, trailed by Austin (-1%), Fort Worth, Texas (-0.7%), San Antonio (-0.4%), and Seattle, WA (-0.1%).

The downward price adjustments in these Texas metro regions reflect their status as among the nation’s most favorable buyer’s markets, characterized by seller inventories exceeding buyer demand by more than twofold. Seattle similarly functions as a buyer’s market. In these locations, property sellers may be compelled to reduce asking prices to generate buyer interest.

To read the full report, click here.