Home-price growth climbed to a new record in May, as low mortgage interest rates continued to drive robust homebuying demand.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 16.6% in the year that ended in May, up from a 14.8% annual rate the prior month. May marked the highest annual rate of price growth since the index began in 1987.
Home-price growth has accelerated in the past year as buyers competed fiercely for a limited number of homes on the market. The Covid-19 pandemic spurred households to seek out more living space, and interest rates have held near record lows. Many homes are getting multiple offers and selling above asking price.
The median existing-home sales price in June rose 23.4% from a year earlier to $363,300, a record high, the National Association of Realtors said earlier this month.
“It’s an incredibly strong housing market,” said Hilla Sferruzza, chief financial officer at home builder Meritage Homes Corp.
