Home prices just set another record high as affordability crisis worsens
foxbusiness.comHome prices reached a new record in May amid an ongoing housing shortage, even as high mortgage rates continued to push affordability out of reach for millions of Americans.
Prices increased 5.9% nationally in May when compared with the previous year, the S&P CoreLogic Case-Shiller index showed on Tuesday, down from the 6.4% pace recorded the previous month.
On a monthly basis, prices climbed 0.3%, according to the index.
«Home prices hit a new high in May,» said Lisa Sturtevant, Bright MLS chief economist. «But with affordability a growing challenge for homebuyers and more new listings coming onto the market, we could be at the peak.»
A $1 MILLION STARTER HOME IS THE NEW NORMAL IN OVER 200 CITIES
The 10-city composite, which encompasses Los Angeles, Miami and New York, rose 7.7% annually, compared with an increase of 8.1% in April.
A sign outside a home for sale in Atlanta, Georgia on Wednesday, Sept. 6, 2023. (Photographer: Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)
The 20-city composite, which also tracks housing prices in Dallas and Seattle, posted an annual gain of 6.8%, a decrease from the 7.3% figure recorded the previous month.
Prices rose in all the 20 major metro markets tracked by the index.
«All 20 markets observed annual gains for the last six months,» said Brian Luke, head of commodities, real and digital assets at S&P DJI, in a release. «The last time we saw that long a streak was when all markets rose for three years consecutively during the COVID housing boom.»
The largest price gain took place in New York, which recorded a year-over-year increase of 9.4%. It was followed by San Diego and Las Vegas, with respective gains of 9.1% and 8.6%.
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