- The median home price in the U.S. increased by just 1.0% in May compared to the previous year, marking the fifth consecutive month of slowing price growth.
- May inventory levels saw a significant 17.2% rise from the previous year, the highest since October 2019, signaling a potential shift to a buyer’s market.
- Regions in the Sun Belt, along with major metros in Texas, Florida, California, Denver, and Atlanta, experienced flat or negative growth in home prices.
The recent data from Homes.com, a subsidiary of CoStar Group (CSGP, Financial), highlights a continued deceleration in the growth of U.S. home prices for the fifth straight month. Nationally, the median home price rose by just 1.0% in May compared to the same period last year, increasing from $385,000 to $388,829. This trend follows a sequence of progressively declining year-over-year price increases since January 2025.
The report also notes a considerable 17.2% increase in the inventory of homes for sale compared to May 2024, marking the highest inventory levels since October 2019. This surge in supply, coupled with easing price pressures, may signify a transition towards a buyer’s market, particularly in several key markets within the Sun Belt region. Despite these changes, home affordability remains a challenge due to persistently high mortgage rates.
Price appreciation continues to be most pronounced in the Northeast and parts of the Midwest, although growth rates in these regions have moderated. The top three markets saw rates of increase drop from between 10.5% and 10.8% in April to between 7.4% and 7.6% in May. Conversely, major metropolitan areas including those in Texas, parts of Florida, and California, along with cities like Denver and Atlanta, are now experiencing flat or declining price growth.
For more insights on the latest trends in the housing market, prospective homebuyers and sellers can visit Homes.com, an integral part of CoStar Group's portfolio, which continues to facilitate connections between home seekers and sellers in the U.S. real estate market.
