An article summarized by Business Wire:
U.S. home prices rose 0.3% in May from April on a seasonally adjusted basis, marking the fastest monthly increase since January, according to Redfin. Prices were also 2.5% higher than a year ago, the strongest annual growth rate in six months. The increase reflects homes that went under contract in April, when mortgage rates dipped and buyer demand improved, helping push closed home sales to their highest level since 2022.
Despite more sellers entering the market, affordable and desirable homes remain in short supply, which continues to support prices. Redfin noted that pending sales have since leveled off as mortgage rates rose during May, but new listings have also flattened, meaning prices may continue rising. The company's economist said buyers waiting for a major price decline may not see much relief and should instead consider negotiating concessions such as mortgage-rate buydowns or closing-cost credits.
Regionally, price growth was strongest in Cleveland, Providence, New York, Miami, and Columbus on a month-to-month basis. Prices fell in several Western markets, including Riverside, San Jose, San Francisco, Phoenix, and Denver. However, San Francisco still posted the nation's largest annual gain at 11.7%, driven in part by the AI boom. The biggest year-over-year declines occurred in Austin, San Antonio, Dallas, Jacksonville, and Orlando.
