03:21 PM EDT, 05/20/2025 (MT Newswires) -- US home prices in April saw the first sequential drop since September 2022, as concerns about tariffs and a potential recession curbed demand, Redfin (RDFN) said Tuesday.

Prices edged 0.1% lower last month from March on a seasonally adjusted basis. Annually, prices rose 4.1% in April, decelerating from a 4.9% rate the month prior and marking the lowest annual growth since July 2023, the real estate brokerage said.

"Home prices are flat (sequentially), and that's good news for buyers after years of rapid increases," Redfin Senior Economist Sheharyar Bokhari said. "Even with prices softening, affordability remains a major hurdle."

The impact of US trade policies and a potential economic downturn are keeping prospective homebuyers on the sidelines. The number of for-sale homes is at a five-year high, leading sellers to offer concessions at near-record levels, according to the report.

After announcing sweeping new import tariffs in early April, US President Donald Trump declared a 90-day pause on certain duties for non-retaliating countries. The US and China recently agreed to suspend most duties on each other's goods for a period of 90 days, while the Trump administration announced a deal with the UK.

Sequentially, home prices dropped in 25 of the 50 most populous US metro areas on a seasonally adjusted basis last month. Charlotte, North Carolina, and Virginia Beach, Virginia, saw declines of about 1% each, the steepest fall, according to the report.

On Monday, Redfin said US existing-home sales saw the first annual decrease in seven months in April amid weak demand due to high prices and economic uncertainty.

Last week, government data showed that US housing starts rose last month as a double-digit percentage gain in multi-family projects helped offset a decline in the single-family component.

Price: 10.22, Change: +0.10, Percent Change: +0.94