Press release
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
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[{"type":"text","content":"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 \nSANTA 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.\n\"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.\"\nWhat it means for homebuyers, sellers, and the housing marketA slower housing market means buyers in certain areas may find they can once again have an offer accepted when putting less down. A recent report from Realtor.com® found down payments declined for the first time since the second quarter of 2020, suggesting it's getting harder for buyers to keep up with costs and that a less competitive housing market may be opening up opportunities for buyers making somewhat smaller down payments. Fortunately, there are a number of down payment assistance programs also available to help buyers, who can search for programs using this tool on Realtor.com®.\n\"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,\" ...