Home prices rise again in May, but pace falls to 11-year low MABA MassachusettsRealEstate FirstTimeBuyers MaBuyerAgent

The year-over-year pace of national home-price increases slowed for the twelve month in a row in May, falling to its lowest rate since early 2012, CoreLogic reported, citing its monthly Home Price Insights report. Nevertheless, prices remained in positive territory for the one hundred and thirty sixth straight month in May, rising one point four percent annually and point nine percent monthly. Looking ahead, the CoreLogic HPI Forecast predicts home prices will rise by one percent on a month-over-month basis from May to June and increase on a year-over-year basis by four point five percent from May to May 2024.

“After peaking in the spring of 2022, annual home-price deceleration continued in May,” Chief Economist Selma Hepp said in a press release. “Despite slowing year-over-year price growth, the recent momentum in monthly price gains continues in the face of recent mortgage-rate increases. Nevertheless, following a cumulative increase of almost four percent in home prices between February and April of 2023, elevated mortgage rates and high home prices are putting pressure on potential buyers.”

Geographically, the deceleration of home prices was most dramatic in some Western states where people moved to less-urban locations during the pandemic and are now exiting as things return to normal. Conversely, Northeastern states and Southeastern cities continued to see the biggest home-price increases as workers returned to job centers post-pandemic. Miami posted the highest annual increase among the country’s twenty largest metro areas, at eleven  point eight percent, followed by Chicago at three point eight percent and Houston at three point one percent.

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