01:16 PM EDT, 03/14/2025 (MT Newswires) -- US home prices in February recorded their slowest annual gains in six months as homebuyer demand cooled, Redfin (RDFN) said Friday.

Home prices rose 3.2% year over year to $425,421 in February, the slowest pace in six months, the real estate brokerage said. Sequentially, prices edged 1.8% higher.

Prices in Milwaukee rose a record 20% from last year, marking the biggest jump among the 50 metros tracked by Redfin. Prices fell in six major metros in February.

Pending home sales declined 6.2% annually, the steepest drop since September 2023, and fell 1.1% month over month.

"Prices are rising even though homebuying demand is falling because in much of the country, there aren't enough homes for sale, which is prompting buyers to bid up prices," according to the report.

Active listings climbed nearly 11% year over year and 1.3% sequentially to the highest level since June 2020.

"While inventory is increasing in many areas, a lot of Midwest markets continue to see declines in the number of homes for sale; three of the five metros where housing supply is falling fastest are in the Midwest," Redfin said.

Price: 10.81, Change: +0.31, Percent Change: +2.95

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