US home prices surge 7.3% year-over-year in April

Posted on May 24, 2024   |  

US home prices rose by 0.5% month-over-month and 7.3% year-over-year on a seasonally adjusted basis.

Home-sale prices have been increasing by about 0.5% each month for the past six months, stabilizing after the pandemic boom and now matching pre-pandemic levels.

Despite high mortgage rates and home prices dampening homebuyer demand, prices continue to rise due to a limited supply of homes for sale.

Although new listings have grown recently, they are still about 20% below pre-pandemic levels, as many homeowners feel "locked in" by the low mortgage rates secured during the pandemic.

Price growth has stabilized at pre-pandemic rates after significant fluctuations during the pandemic homebuying surge.

The limited housing inventory is largely due to homeowners being reluctant to sell, benefiting from the low mortgage rates they obtained during the pandemic.