According to the latest monthly Housing Trends report released on June 1, U.S. real estate prices rose slightly in May 2023, but overall slowed to a record low since 2016, suggesting that real estate values probably won't peak in 2023.
In addition, the growth of housing stocks on the market continues to slow and shrink in many metro areas across the country, as fewer sellers put their properties up for sale than last year, and buyers compete for the remaining available offers.
What does this mean for real estate buyers
The slowdown in the housing market means that buyers in certain areas may find that they can buy a home again for a lower price. According to a recent report from Realtor, it is becoming increasingly difficult for buyers to cope with expenses and that a less competitive housing market may be opening up opportunities for buyers with more modest capital.
Real estate price growth slows
The average list price in the United States rose to $441,000 in May, compared with $430,000 in April, and decreased by 1.7% compared to the record high of June 2022 at $449,000. The annual growth rate slowed to +0.9% in May, compared with April's growth rate of 2.5%, which was the lowest price growth rate in the entire history of observations since 2016.
Nationally, the average price per square foot decreased (-0.3%) compared to the previous year for the first time since 2016.
Higher mortgage rates and housing prices compared to May last year increased the monthly cost of financing 80% of typical housing by about $296 (+15.5%) compared to last year.
Among the 50 largest subways in the United States, 15 of the 50 largest markets saw a decrease in the average price list.
Nationwide, prices for 12.7% of active ads were reduced in May compared to 10.2% in May last year. Although this indicator is higher than last year, it is lower than the typical levels of 2017-2019.