Home prices continue to break records but the pace of increases is slowing. Nationally, prices were up 5.9% in May compared with a year earlier.

Prices in the country’s largest 10 cities were up 7.7% in May compared with the same month in 2023.

What You Need To Know

  • Prices were up 5.9% in May compared with a year earlier, according to the S&P CoreLogic Case-Shiller National Home Price Index

  • Prices in the country’s largest 10 cities were up 7.7% in May compared with the same month in 2023

  • Home prices have increased 4.1% so far this year — the fastest start in two years

  • Prices rose fastest in New York City

“While annual gains have decelerated recently, this may have more to do with 2023 than 2024, as recent performance remains encouraging,” S&P CoreLogic Case-Shiller Head of Commodities Brian D. Luke said in a statement.

The Case-Shiller home price index has increased 4.1% so far this year – the fastest start in two years, he said.

“Coming into the 2024 presidential election, traditional red states are in a dead heat with blue states, both averaging 5.9% gains annually.”

Home prices rose fastest in New York City, increasing 9.4% annually in May and displacing San Diego, which had held the spot for six months running.

With the Federal Reserve poised to cut interest rates for the first time since 2022, “the waiting game for the possibility of favorable changes in lending rates continues to be costly for potential buyers as home prices march forward,” Luke said.

The median price of an existing home in the U.S. is currently $426,900 according to the National Association of Realtors.