US Home Prices Are Decelerating, Particularly in These Western Markets

U.S. single-family home price growth slowed on a year-over-year basis for the 12th consecutive month in May, but home appreciation remained positive for the 136th straight month. On a month-over-month basis, home prices increased by 0.9% from April to May, but a number of Western states saw prices decline after surging to unsustainable highs during the pandemic.

States like Idaho, Washington, and Nevada saw annual home prices fall by 8%, 7.5%, and 5.6%, respectively, the most significant drops across the country. By contrast, Miami posted the highest year-over-year home price increase with a gain of 11.8%, according to HousingWire.

“After peaking in the spring of 2022, annual home price deceleration continued in May,” said Selma Hepp, chief economist at CoreLogic. “Despite slowing year-over-year price growth, the recent momentum in monthly price gains continues in the face of recent mortgage rates increases.”

“Nevertheless, following a cumulative increase of almost 4% in home prices between February and April of 2023,“ Hepp continued, “elevated mortgage rates and high home prices are putting pressure on potential buyers. These dynamics are cooling recent month-over-month home price growth, which began to taper and is returning to the pre-pandemic average, with a 0.9% increase from April to May.”

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