The Redfin Home Price Index rose +0.1% MoM in December and +2.2% YoY, extending the late-2025 slowdown in annual price growth.

• YoY home price growth slowed to +2.2% (Nov: +2.6%), the slowest annual increase since 2012 and consistent with the cooling trend that began in early 2025.

• Slower growth reflected a continued pullback in buyer demand amid relatively high mortgage rates and broader uncertainty tied to tariffs, inflation, and a challenging job market.

• Prices still rose overall because prospective sellers have also been pulling back, keeping supply tight even as demand softened.

• Prices fell MoM in 14 major metros, up from 12 in November but far below 32 in July, suggesting regional weakness persisted but was less widespread than mid-2025.

• The largest MoM metro declines were Houston (-0.9%), Pittsburgh (-0.6%), and Milwaukee (-0.6%), indicating the steepest monthly weakness was concentrated in a few markets.

• The biggest MoM increases were San Francisco (+2.6%), New York (+1.3%), and Philadelphia (+1.3%), highlighting continued uneven regional price momentum.

• Affordability is expected to improve in 2026 as falling mortgage rates have strengthened purchasing power, with the typical monthly payment reaching its lowest level in two years in early January.