Homes.com, a leading online residential marketplace by CoStar Group, has released a new report analyzing home prices for May, revealing a continued slowdown in price increases for the fifth consecutive month. Nationally, the median home price rose by just 1.0% compared to the same period last year, marking a modest increase of $3,829, from $385,000 to $388,829. This trend of slowing price appreciation is being observed across the country, with the highest price growth in the Northeast and Midwest. However, even these regions experienced moderated growth, with rates slowing to between 7.4% and 7.6%. Meanwhile, several major metros, including areas in Texas, Florida, California, Denver, and Atlanta, have shown negative or flat price growth. Alongside the easing price pressures, the inventory of homes for sale increased by 17.2% from the previous year, reaching the highest level since October 2019. This rise in inventory, combined with softening prices, suggests a shift toward a buyer's market, especially in key metros within the Sun Belt region. Despite these developments, affordability remains a concern due to elevated mortgage rates. The report indicates a transition in the housing market landscape, offering potential opportunities for homebuyers.
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