Home Prices Break Another All-Time High

Home prices broke records again in May despite appreciation cooldowns across the market.

Prices were up 5.9% YOY in May, down from April’s 6.3% but still elevated, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.

With this increase, prices hit their eighth record high of the last year.

Month-over-month, national prices rose 0.3% after seasonal adjustment, unchanged from both March and April, while the 20-City Composite and the 10-City Composite registered gains of 0.3% and 0.4% respectively, both decreases.

“While annual gains have decelerated recently, this may have more to do with 2023 than 2024, as recent performance remains encouraging,” Brian D. Luke, Head of Commodities, Real & Digital Assets, said in a press release.

“Our home price index has appreciated 4.1% year-to-date, the fastest start in two years. Covering the six-month period dating to when mortgage rates peaked, our national index has risen the past four months, erasing the stall experienced late last year.”

New York edged San Diego out of the number one spot for annual price gains, clocking in at 9.4%. San Diego came in second with 9.1%, followed by Las Vegas with 8.6%.

But all 20 cities analyzed saw annual gains for the last six months.

“The last time we saw that long a streak was when all markets rose for three years consecutively during the COVID housing boom. This rally pales in comparison in both duration and annual gains, with above-trend growth of 6.2%,” Luke added.

“The waiting game for the possibility of favorable changes in lending rates continues to be costly for potential buyers as home prices march forward.”

The Federal Housing Finance Agency’s House Price Index has similar results, showing prices up 5.7% YOY.

“U.S. house price movement was flat in May,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “The slowdown in U.S. house price appreciation continued in May amid a slight rise in both mortgage rates and housing inventory.”

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