U.S. home prices hit another all-time high in May, though the growth rate continues to decelerate.
Prices rose 2.3 percent year over year that month, according to the S&P CoreLogic Case-Shiller Index, which was not adjusted for seasonality, released Tuesday.
May’s housing price index was the highest since the firm began the index in 1987.
However, in April home prices had climbed by 2.7 percent year over year, a figure that also was a decline from prior months’ growth. Month over month, prices across the country inched up by just 0.4 percent.
More homes have been hitting the market of late, as sellers hope to tap into the rising prices across the country. However, the increased inventory has led to sluggish sales, even as a greater share of sellers agree to price discounts.
Still, buyers continue to remain cautious about the economy among ever-changing tariff news, immigration policy upheavals and job security. Mortgage rates also remain elevated, and the Federal Reserve has signaled that it is unlikely to lower its benchmark interest rate when it meets today and tomorrow.
In June, existing home sales fell to about 3.9 million — by 2.7 percent — compared to the month before, according to listings platform Realtor.com. Pending deals in May were up year over year and month over month though still below their 12-month average, according to data from the National Association of Realtors.
New York posted the greatest year-over-year growth in home prices in May among the country’s top cities, as prices rose by nearly 7.4 percent in the Big Apple. Chicago followed, with an annual gain of 6.1 percent.
Home prices fell the most in Tampa, where they plunged by 2.4 percent compared to May 2024, marking the city’s seventh straight month of year-over-year drops.
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