US home prices posted fastest annual gain in a year in August: Redfin
Redfin says US home prices rose 3.7% year over year in August, the fastest annual pace in a year, even as sellers outnumbered buyers by 58% in the strongest buyer’s market on record.
US home prices kept climbing in August despite what Redfin is calling the strongest buyer’s market on record. Home prices increased 0.25% month over month in August on a seasonally adjusted basis, down slightly from 0.26% in July and 0.27% in June, while prices rose 3.7% from a year earlier, the fastest annual growth rate in a year.
What the Redfin data shows
The Redfin Home Price Index uses the repeat-sales pricing method to calculate seasonally adjusted changes in single-family home prices, with August data covering the three months ending August 31, 2026.
Price growth slowed slightly because buyers continue to gain bargaining power, as August was the strongest buyer’s market on record while elevated housing costs and economic uncertainty are keeping a lid on demand, even as the number of homes for sale increases.
Sellers still outnumber buyers
Redfin reported 58% more home sellers than buyers in August, the widest imbalance in its records. Yet equity-rich owners are largely refusing to cut prices aggressively, keeping the national index in the green.
Median resale prices tell a similar story. The median US home-sale price rose 2.2% year over year to $398,596, the highest August level on record, while the monthly average mortgage rate jumped to 6.67%, the highest level in over a year.
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Where prices moved the most
St. Louis recorded the largest month-over-month price increase at 1.1%, followed by Pittsburgh at 1%, with San Antonio, San Jose and Baltimore each seeing 0.9% monthly gains, while Austin and Charlotte experienced the steepest price declines, both falling 0.7% month over month.
On the annual side, San Francisco led gains with a 12% increase, while Dallas saw the largest decline at -1.4%. Price relief remains highly local, with annual declines concentrated in Texas while several Midwest, Northeast, and Florida markets posted strong gains.
Why traders should care
Sticky home prices paired with a 6.67% average mortgage rate reinforces the affordability squeeze that has been weighing on transaction volumes and homebuilder sentiment. If price growth continues to accelerate even into a buyer’s market, it complicates the disinflation narrative and keeps housing on the Fed’s radar as it weighs further rate cuts.
Options market and stocks to watch
RKT: Rocket Companies owns Redfin, so its mortgage origination volume is directly tied to the affordability picture these numbers describe. Watch for flow reactions on any shift in rate expectations.
Z: Zillow is a read-through on listings activity and buyer engagement as inventory hits multi-year highs.
DHI and LEN: Homebuilders are caught between resilient pricing and softening demand, particularly across Texas metros where declines are concentrated.
XHB: The homebuilder ETF is the cleanest way to track sector-wide sentiment as rates and price data print. Watch for other housing headlines that could shift positioning.
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