WASHINGTON (AP) – U.S home prices rose at a slower pace in May, a sign that many would-be buyers are finding properties unaffordable.
The S&P CoreLogic Case-Shiller 20-city home price index increased 2.4% in May from a year earlier. That marked a slight deceleration from the 2.5% year-over-year gain in April.
The sluggish price growth stems largely from the most expensive markets, where years of price growth have undermined affordability. Home prices rose less than 2% in Los Angeles, New York, San Diego and San Francisco. Prices in the typically hot market of Seattle fell 1.2% from a year ago, a sharp reversal from an annualized gain of 13.6% in May 2018.
There are signs in the National Association of Realtors report on existing home sales that lower mortgage rates might lift prices.