The pace of annual growth in US home prices decelerated for the 11th straight month in March, with a further slowdown possible in coming months amid tariffs-induced economic uncertainty, Redfin (RDFN) said Tuesday.

Prices rose 4.6% year over year last month, following a 5.1% increase in February and marking the first time since August 2023 that annual growth was less than 5%. Sequentially, prices increased 0.2% on a seasonally adjusted basis, the slowest rate since December 2022. The real estate brokerage said price growth was slowing because demand wasn't able to match the increasing number of homes for sale.

"Homes are taking longer to sell and prices are falling in some areas because fear of a broader economic slowdown is pushing many would-be buyers to the sidelines," Redfin Senior Economist Sheharyar Bokhari said in a statement.

After announcing sweeping new tariffs on US imports earlier this month, President Donald Trump declared a 90-day pause on certain levies for non-retaliating countries. China responded with its own retaliatory duties, and Washington and Beijing have since raised tariffs on each other's goods multiple times.

"New tariffs are adding to the economic uncertainty and prices may slow even further in coming months," Bokhari said. "With housing costs at near-record highs, that's a silver lining for a buyer who has to move right now, as there will be more room for negotiation."

While demand is holding up in the Midwest and certain other parts of the country, buyers are generally cautious, Redfin said.

Compared with the previous month, home prices dropped in 20 of the 50 most populous US metro areas in March on a seasonally adjusted basis, according to the report.

On Tuesday, the International Monetary Fund slashed its 2025 growth forecast for the world's biggest economy amid "greater policy uncertainty, trade tensions and softer demand momentum."