US Home Prices in May Increased at the Slowest Rate Since 2016

According to a review of the Realtor.com® Monthly Housing Trend Report (MHTR) by LBM Journal (6-1-23), home prices increased modestly in May, but price growth slowed to the lowest rate on record since 2016, which Realtor.com suggests means that home prices many not see a new peak in 2023. In addition, home inventory growth continues to slow and is declining in many metro areas across the country as fewer sellers list their homes than last year and buyers compete over the remaining affordable homes for sale in their locations.

The MHTR also notes that home listing prices were slightly higher year-over-year, but growth in the typical asking price of for-sale homes continued to decline to the lowest single digits. In addition, the median listing process on a square-foot basis declined compared to last year—a first in Realtor.com data history.

According to the report, the US median list price grew to $441,000 in May, up from $430,000 in April but down 1.7% from June 2022’s record high of $449,000. The annual growth rate slowed to 0.9% in May, which is down from April’s 2.5% growth rate to the lowest price growth in Realtor.com records since 2016.

Finally, the MHTR reported that across the 50 largest US metros, the typical home spent 37 days on the market—13 additional days compared to May 2022. Furthermore, the trend was seen across all regions, with the larger metros in the South seeing the largest increase, up 16 days, followed by the West, up 12 days; the Midwest, up 9 days; and the Northeast, up 7 days.