House prices in US soar 5.7 percent annually in May
Date
7/31/2024 9:42:49 AM
(MENAFN) According to data released on Tuesday by the Federal housing Finance Agency (FHFA), U.S. house prices experienced a notable annual increase of 5.7 percent in May compared to the same month the previous year. This marks a continued upward trend in the housing market, although the rate of appreciation has moderated slightly. The figure for April was also revised upward to reflect a gain of 6.5 percent, up from the initially reported 6.3 percent, indicating a stronger performance than previously estimated.
On a monthly basis, however, house prices remained flat in May, failing to meet market expectations for a 0.2 percent increase. This stagnation in prices contrasts with the revised April figure, which saw a monthly increase of 0.3 percent, up from the initial gain of 0.2 percent. The flatness in house prices for May suggests a pause in the upward momentum seen in earlier months.
Anju Vajja, acting deputy director of FHFA’s Division of Research and Statistics, commented on the situation, noting that "U.S. house price movement was flat in May." Vajja attributed this stagnation to a combination of factors, including a slight increase in mortgage rates and a rise in housing inventory. These elements have contributed to a continued slowdown in house price appreciation, reflecting broader trends in the housing market.
Overall, while the annual growth rate remains strong, the monthly data indicates a period of stabilization in house prices, with external factors such as rising mortgage rates and increased housing supply playing a role in moderating price increases.
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