Realtor.com® May Housing Report: Home Price Gains Slow to Lowest Rate on Record
In May, home price growth slowed to 0.9% year over year, as active inventory decreased in 21 out of 50 of the largest metros
SANTA CLARA, Calif., June 1, 2023 /PRNewswire/ -- Home prices rose slightly in May, but price growth slowed to the lowest rate on record since 2016, suggesting home prices may not see a new peak in 2023, according to the Realtor.com® Monthly Housing Trends Report released today. Additionally, 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.
"April and May are historically popular months to buy, and typically by this time in the year we've exceeded the prior year's peak home price. Weakening home price growth for the past 12 months is increasing the odds that we may not see a new home price peak this year, for the first time in the history of our listing data, which dates back to mid-2016, and this is likely welcome news to homeshoppers," said Danielle Hale, Chief Economist for Realtor.com®. "Despite stalling price growth, home listing prices are up slightly compared to last May, and with rates more than a percentage point higher than a year ago, buyers continue to face affordability headwinds. The good news for sellers is that buyers are still out there, and this month's slower growth in the active inventory of homes for sale indicates that shoppers are in the market and actively searching for homes that fit their needs and budget."
What it means for homebuyers, sellers, and the housing market
"As buyers' budgets are being stretched to the max, there are opportunities for negotiation, especially on homes that have been sitting on the market for a while," said Realtor.com® Executive News Editor Clare Trapasso. "They can ask sellers to come down on the price, make costly repairs, as well as contribute to their closing costs or buy down their mortgage rates. If they're purchasing new construction, they can also request upgrades. This can add up to substantial savings."
May 2023 Housing Metrics – National
Home price growth stalls
Inventory tightens as fewer sellers list and buyers compete over remaining homes
More days on market gives buyers time to search for homes and bargain
May 2023 Housing Overview by Top 50 Largest Metros
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