The annual U.S. single-family home price growth slowed for the 12th straight month in May, according to new data from CoreLogic. However, which the growth rate only represented a 1.4% increase year-over-year – the lowest rate in 11 years – it also affirmed the 136th straight month of growth.
On a month-over-month basis, home prices increased by 0.9% from April to May. CoreLogic is also forecasting annual U.S. home price gains increasing to 4.5% by May 2024.
Miami posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in May at 11.8%, while Atlanta and Charlotte saw the next-highest gains, both at 4.4%. Among the states, Maine and New Jersey ranked the highest for annual appreciation in May at 7.2% and 7.1%, respectively, while 11 states and the District of Columbia posted annual home price losses.
“After peaking in the spring of 2022, annual home price deceleration continued in May,” said Selma Hepp, chief economist at CoreLogic. “Despite slowing year-over-year price growth, the recent momentum in monthly price gains continues in the face of recent mortgage rates increases. Nevertheless, following a cumulative increase of almost 4% in home prices between February and April of 2023. Elevated mortgage rates and high home prices are putting pressure on potential buyers. These dynamics are cooling recent month-over-month home price growth, which began to taper and is returning to the pre-pandemic average, with a 0.9% increase from April to May.”
