Home prices reached new heights in May, according to the latest data from the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
- Y-O-Y: Despite a slight slowdown in growth, home prices nationwide increased by 5.9% in May, a decrease from the 6.3% growth observed in April, marking the lowest level since December 2023. This is the second consecutive month of slowing growth.
M-O-M:
All-Time High: The Case-Shiller Index recorded an all-time high of 323.48 in May, marking the fourth consecutive month of record highs. The 20-city composite index also experienced a slowdown, with price growth decelerating to 6.8% in May from 7.3% in April, the lowest level since January.
- Beat The Street: However, this was slightly better than economists’ expectations, who had anticipated a slowdown to 6.7%.
NYC: New York City emerged as the new leader in home price growth among major cities, with a 9.4% increase in May, overtaking San Diego, which had been on top for the past four months. San Diego followed closely with a 9.1% growth, and Las Vegas rounded out the top three with an 8.6% increase in May.
- On the other end of the spectrum, Portland recorded the smallest year-over-year growth, with only a 1.0% annual increase in May.
What They’re Saying: Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices, noted the similarities between this year and the previous one. “2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall. Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year.”
The continued rise in home prices, despite the deceleration in growth, highlights the ongoing demand in the housing market. As the market enters the summer months, traditionally a more active period, it remains to be seen how it will respond to these new record highs and the broader economic conditions. the broader economic conditions.
