May home prices down 19% in May compared to April

90
3
May home prices down 19% in May compared to April

Home prices went up in May, but at a lower rate than what was seen in April, according to the latest S&P CoreLogic Case-Shiller home price index.

In May, real estate prices went up 19.7% annually, down from the 20.6% annual gain for April, Case-Shiller's U.S. National Home Price NSA index said. Home prices increased by 1.5% from April to May on a monthly basis.

Craig Lazzara, S&P Dow Jones Indices DJI managing director, said that the housing data for May 2022 continued to be strong as price gains decelerated slightly from very high levels. Despite this deceleration, growth rates are still extremely robust, with all three composites at or above the 98th percentile historically. You can find your personalized interest rate on Credible without affecting your credit score.

Here are the cities with the highest growth.

In May, house prices went up 19%, compared to the top 10 metro areas, down from 19.6% in April, according to the home price index. The prices of the top 20 largest cities went up 20.5% annually in May, down from 21.2% in April.

Tampa, Miami and Dallas reported the strongest annual gains in May at 36.1%, 34% and 30.8%.

The market's strength continues to be broad as all 20 cities recorded double-digit price increases for the 12 months ended in May, Lazzara said. May s gains were ranked in the top quintile of historical experience for 19 cities and in the top decile for 17 of them.

He continued, however, that there was evidence of deceleration at the city level. In only four cities, price gains for May exceeded those for April. As recently as February of this year, all 20 cities were accelerating. You can compare multiple mortgage lenders at once, and choose one with the best rate at Credible.

In the months ahead, home price growth could be moderate.

Home prices have gone up over the past year but this could slow down soon, according to CoreLogic. It recently predicted that home prices would drop to an annual gain of 5% by May 2023, as rising mortgage rates and affordability challenges are expected to cool homebuyer demand.

We noted previously that mortgage financing has become more expensive as the Federal ReserveFederal Reserve ratchets up interest rates, a process that was ongoing as our May data was gathered, Lazzara said. A more challenging macroeconomic environment may not support extraordinary home price growth for a long time. The Federal ReserveFederal Reserve has raised interest rates four times this year. In July, the Fed raised rates by 75 basis points, marking the largest back-to-back increase in decades. The Fed raised rates by 75 basis points in June. This will cause the demand for new homes to increase as a result of the increase in mortgage rates.

To see if this is the right option for you, contact Credible to speak to a home loan expert and get your questions answered.

Email The Credible Money Expert at Money Expert Credible.com and ask a question that is not answered by Credible in our Money Expert colum.