- Prices marched higher again in May, as homebuyers faced more of the same during peak home buying season with year-over-year price growth at 6.4%. While home prices grew, the annual growth in home prices flattened, remaining unchanged from April, offering modest relief for house hunters.
- Markets in the West once again dominated annual home price growth, which saw Seattle, Las Vegas and San Francisco log increases in the double-digits.
- Affordability woes and low inventory continue to weigh on the housing market, preventing prices from easing despite a 2018 mortgage rate peak in May.
U.S. home prices continued to rise in May, up 6.4% year-over-year according to the latest S&P CoreLogic Case Shiller National Home Price Index released Tuesday. After a deceleration in annual home price growth in April, numbers for May remained unchanged. May also saw the rate for 30-year fixed mortgages reach the highest level of the year, but this potential hit to demand did nothing to stem price growth amid an overall lack of inventory. The bottom end of the market and first-time home buyers continues to suffer as the lack of affordability pushes available homes further and further out of reach.
Seattle, Las Vegas and San Francisco continued to lead in terms of annual home price growth, with prices rising 13.6%, 12.6% and 10.9%, respectively. Seattle shows no signs of cooling as the Emerald City notched its 30th consecutive month of double-digit year-over-year price growth. Nineteen out of the 20 markets the index tracks saw monthly gains in May, with New York remaining flat.
