Median home prices in the United States continued their double-digit appreciation in May, reaching a new all-time high of $ 380,000, but a good sign for home buyers facing a competitive real estate market, the rate of price growth moderated for the second time in 13 months, according to Realtor.com Monthly Housing Trends Report released today. As for home prices in the Phoenix metro area, the median listing price hit $ 450,000, a 17.1% year-over-year increase.
READ ALSO: Here’s Why Metro Phoenix’s Luxury Home Market Is Booming
In what looks more like a typical home buying season, sellers continued to come into the market in May with new listings up 5.4% year over year. However, with less than half of the total number of homes for sale compared to last year, homes are selling 32 days faster than a year ago and 18 days faster than in 2017-2019. Importantly, the housing market stagnated during the first days of the pandemic in April and May, exaggerating many year-to-year comparisons. To provide perspective, 2017-2019 comparisons are provided where applicable.
“Homebuyers looking to lock in still low mortgage rates face fierce competition for fewer homes for sale than the historic pandemic lows of last year, pushing the typical asking price in May to an all-time high for the fourth consecutive month“Said the chief economist of Realtor.com Danielle Hale. “The good news is that the price momentum may be starting to slow down. While still in double digits, May was the first slowdown in non-weather-related price appreciation since april 2020. And with a normal summer seasonal peak in house prices expected this year, we could see growth fall back to a more normal single-digit pace in the fall. “
Hale said Realtor.com®Data for May indicates that major metropolises could lead the nation’s slowdown in price growth with more new sellers. In May, the largest metros saw annual price increases below the national rate and some of the largest numbers of new homes were added to the market.
Prices hit record high as growth rate slows
Nationally, the median list price rose to $ 380,000 in April, the last all-time record observed according to Realtor.com® data, which dates back to 2012. Despite being the tenth consecutive month of double-digit price increases, the pace of growth slowed to 15.2% year-on-year in May, lower than the increase of 17 , 2% yoy reported in April. .
The prices of active listings in the country’s largest metropolises rose on average 7.4% in May compared to last year. Among the 50 largest American metros, Austin, Texas (+ 32.2%), Riverside, California (+ 21.5%) and Las Vegas (+ 18.5%) saw the largest increases.
Tight inventory even when sellers add new listings
Nationally, the total inventory of unsold homes (including pending listings) was down 20.8% from May 2020, while active listings were more than half (-50.9%) of last year’s levels. New registrations increased 5.4% from last year. Although more sellers are entering the market, there were 522,000 fewer homes for sale in May compared to a year ago when the market stalled due to the pandemic. Compared to the typical rate seen in May from 2017 to 2019, sellers added 23.3% fewer newly listed homes last month.
The country’s 50 largest metropolises gained 12.4% in new listings compared to last year in May, more than double the national average rate. Many of the metros that recorded the biggest gains were the cities that were the first to be hit by the pandemic, such as Buffalo, New York, up 64.3%, Philadelphia cream (+ 52.5%) and Washington DC(+ 48.9%).
Houses sold more than a month faster than last year
With less than half the number of homes for sale compared to the same time last year, potential homeowners are feeling the pressure to act quickly, with average time on the market hitting a new low in May at 39 days. That’s 32 days faster than last year. Homes sold 19 days faster on average in May, compared to 2017 to 2019. May home sales were fastest in Rochester, New York, which experienced an 11-day median in the market, and Columbus, Ohio (13 days) and Denver (14 days).