WASHINGTON, June 23, 2023 (GLOBE NEWSWIRE) -- Nationally, prices have now returned to the peak level reached in June 2022 (not seasonally adjusted), according to data from the American Enterprise Institute’s (AEI) Housing Center. The national Month-over-Month (MoM) HPA in May was 1.1%, continuing the upward trend that began in January 2023, after MoM HPA had declined from July to December 2022. Based on Optimal Blue rate lock data, MoM HPA will remain positive for June (+0.5%) before turning slightly negative for July 2023 (-0.2%). Home prices have increased in all of the 60 metros since their respective recent troughs in either December 2022 or January 2023 (see #1 in graphic).
May’s Year-over-Year constant-quality HPA was 1.8%, down slightly from 1.9% a month ago and 16.5% a year ago.
YoY HPA varied significantly among the 60 largest metros (see #2 in graphic). It ranged from -9.4% in San Francisco (-13.4% inflation-adjusted) to 6.2% in Milwaukee (+2.2% inflation-adjusted).
Historically, low price tier HPA has outpaced HPAs for upper price tiers. This trend continued in May, with the high price tier flat on a YoY basis, while the low price tier increased 6.3% YoY.
May months’ supply dropped from its recent uptick, signaling the continuation of the strong seller’s market. Months’ supply stood at 3.1 months in May 2023, down from 3.2 months both last month and from May 2019 (pre-pandemic). (See #3 in graphic). The months’ supply for the low price tier came in at 2.0 months in May 2023, helping to explain the 6.3% YoY price growth for this tier.
The AEI Housing Center provides the most advanced and timely information on home prices available. Measures of home price appreciation like the Case Shiller index have months of lag. The Housing Center has published data for May 2023 and is able to accurately project June and July with Optimal Blue rate lock data as well.
National Home Price Appreciation (HPA) Index – May 2023
Media Contact Details:
Sissi Li
American Enterprise Institute Housing Center
Washington, DC
https://www.aei.org/centers/housing-center/
Sissi.Li@aei.org
203-419-5240
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8c33f9ff-7880-4836-9c30-6136ff147f08
