Home prices are much higher than they were before the pandemic. But record home price appreciation might be coming to an end, for now. Home prices rose 0.3% in May, which is the smallest monthly rise since January of last year. Prices rose 7.2% from a year earlier, “but annual growth showed signs of plateauing,” according to a new analysis from Redfin.
The pace of home price growth seems set to slow further, just as people wait on the sidelines for mortgage rates to drop, even if it’s only a little. But if buyers rush into the market at full force, price growth could accelerate, and if sellers do so, prices could cool all the more.
