Home Prices Log Fastest Annual Growth Since June 2025 in Quarter Through September, Redfin Says

03:52 PM EDT, 10/21/2026 (MT Newswires) -- US home prices rose at the fastest annual pace in more than a year in the quarter through September, aided by robust demand in the luxury market, according to a report by Redfin. Prices increased 3.8% year over year in the three-month period ended Sept. 30, the biggest jump since June 2025, the online real estate brokerage said. Prices grew 0.25% sequentially following a 0.21% gain in the prior three-month period. "Even though buyers have more negotiating power than they've had in over a decade, prices are still climbing a little each month," Redfin said in a report Tuesday. "That's mostly because sellers aren't desperate: a lot of homeowners have built up enough equity that they'd rather wait than accept a lowball offer -- and some are delisting. That keeps a floor under prices." Stronger demand in the luxury market is also a factor in "propping up" prices, the brokerage said. Home prices grew month on month in 34 of the 50 most populous US metros, led by a 1.9% gain in Philadelphia. Fort Worth, Texas, saw the biggest drop of 0.9%, the report showed. Annually, prices rose most in San Francisco, up 14%, while six major metros saw declines, led by a 2.1% decrease in San Antonio, Texas, Redfin said. Earlier this month, a Redfin report showed that pending home sales in the US fell the most in more than three years last month as mortgage rates jumped above 7%. On Tuesday, official data showed that housing starts dropped to a four-month low in September. Separately, National Association of Realtors Chief Economist Lawrence Yun said elevated mortgage rates "weakened" market conditions last month. "Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates," Yun said in the report.