Amid recent reports of a
“Since peaking in February, price appreciation has moderated slightly,” said Will Doerner, supervisory economist in FHFA’s division of research and statistics. “Price growth continues to remain above historical levels, supported by the low inventory of properties for sale.”
High interest rates contributing to
May home prices increased across all nine federal U.S. geographic regions on both a monthly and yearly basis, per the FHFA. New England saw the largest uptick between April and May, up 2%, followed by East South Central and South Atlantic regions at 1.9%. The Pacific division lagged the rest of the field with just an 0.2% change month over month.
On an annual basis, the South Atlantic division had the highest rate of price growth at 23.8%, with the Mountain region in second at 22.7% and East South Central in third at 19.7%. The Middle Atlantic division, with a 13.9% yearly gain, reported the smallest increase.
When comparing annual rates of change from one year ago, costs in the South Atlantic also saw the biggest spike in prices, which grew to 23.8% from 18.2% one year earlier. On the other end of the spectrum, prices moderated the quickest in the Pacific division, dropping to a 16% pace of growth after surging 21.7% in May 2021.