Redfin (RDFN) said Tuesday that US home prices rose by 5.4% year-over-year in January, marking the slowest annual pace since August 2023.

On a month-to-month basis, prices ticked up by 0.6%, slightly faster than the 0.5% growth recorded during each of the three previous months, according to the real estate brokerage.

The company said the pace mainly reflects contracts signed in December, but it expects price growth to slow soon because of fewer sales and a rise in new listings. Redfin Economist Sheharyar Bokhari noted that homes are now sitting on the market longer and are selling at nearly 2% below their list price, which may further soften price gains.

According to Redfin, 10 of the 50 most populous US metro areas saw a drop in home prices in January, led by Tampa, Florida, with a 1.6% decline, while Pittsburgh, Pennsylvania, logged the biggest monthly increase at 3%.

Shares of the company were down about 3.8% in recent trading.

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