Mortgage rates above 6% mean many homeowners feel ‘locked in’ by their current mortgage rate and are choosing not to sell. “New listings have lagged the previous year’s levels for long enough that the impact has become clear in active inventory, which has fallen year over year for the last four weeks.” “Though buyer demand has generally lessened, limited existing home stock means many markets are seeing competition reminiscent of the last few years,” said Jones. Just 1% of all US homes changed hands so far this year (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images) Saul Loeb/AFP/Getty Images/FILE The housing market remains unaffordable for many buyers, but some areas are seeing high levels of competition as a result of low for-sale inventory.Ī house is for sale in Arlington, Virginia, July 13, 2023. “Slightly lower rates motivated eager buyers to enter the housing market, but dwindling home supply meant that this demand kept upward pressure on prices.”

“This month’s index data tracks prices for March, April and May, a period during which mortgage rates spanned a 0.5 percentage point range, but largely remained on the low end,” she said. May’s data demonstrated the resilience of home prices as buyers took advantage of the month’s relatively lower rates, keeping the pressure on available inventory, said Hannah Jones, economic research analyst for. Since May 2018, the top-ranked cities have been sunbelt cities like Las Vegas Phoenix Miami and Tampa, Florida. “And that was Seattle, which isn’t all that cold.” “It’s been five years to the month since a cold-weather city held the top spot,” said Lazzara. The data shows what he called “The Revenge of the Rust Belt” as the biggest year-over-year prices were in Chicago, up 4.6% Cleveland, up 3.9% and New York, up 3.5%. Regional differences continue to be striking, said Lazzara. The 20-City Composite posted a 1.7% year-over-year loss, same as in the previous month, which was the biggest decline since April 2012. The National Composite is 0.5% below its May 2022 level, with the 10- and 20-City Composites also negative on a year-over-year basis. Year over year, prices continued to decline. Renters are being hit harder by inflation than homeowners May’s increase comes after an uptick in February that snapped a seven-month streak of month-over-month declines.Ī new residential apartment building are seen on Jin the Brooklyn borough of New York City. Before seasonal adjustments, the national index rose 1.2% from April. Both the 10-City and 20-City composites saw increases, too, rising 1.1% and 1%, respectively. The national index rose 0.7% in May from April, after seasonal adjustment. Month over month, home prices rose in May for the fourth consecutive month.

The outlier is Phoenix, down 0.1% in both months. Seasonally adjusted data showed rising prices in 19 cities in May, repeating April’s performance. “The ongoing recovery in home prices is broadly based.”īefore seasonal adjustment, prices rose in all 20 cities in May, as they had also done in March and April. “The rally in US home prices continued in May,” said Craig Lazzara, managing director at S&P DJI.

Home prices remained high in May, dropping slightly from a year before when prices were near record highs and notching a monthly gain from April, according to the latest S&P CoreLogic Case-Shiller US National Home Price Index released Tuesday.

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