Friday July 29, 2022
Home prices have been increasing at an accelerated pace for years now. That's great for homeowners but an obvious challenge for buyers, who could likely use some relief. Fortunately, they're starting to get it.
The number of homes available for sale is improving and the added inventory should begin to correct some of the imbalance that's been driving prices higher. According to one recent analysis, it's already started. The latest S&P Case-Shiller Indices – considered among the leading measures of U.S. home prices – shows price increases are slowing. S&P's National Composite Index found home prices increased about one percent less in May than they did in April.
But though the increases weren't as big as the month before, they were still significant. “The market's strength continues to be broadly based, as all 20 cities recorded double-digit price increases for the 12 months ended in May,” Craig J. Lazaara, S&P's managing director, said. “However, at the city level, we also see evidence of deceleration. Price gains for May exceeded those for April in only four cities.”
The fact that the majority of the included cities saw slower increases in May is a big change from earlier this year when all 20 were accelerating. (source)