The median home price increased by just 1.0% in May over the same time last year. Price increases slowed across the country.
ARLINGTON, Va.–(BUSINESS WIRE)–Homes.com, a CoStar Group leading online residential marketplace, today released a new report analyzing home prices in May (based on the data collected to date), price trends across major metros, and what the latest developments in the housing market mean for homebuyers.
According to the preliminary estimates, home prices continued to increase in May. Still, the rate of price increases slowed for the fifth consecutive month, with the median home price rising modestly by 1.0% in May. Year-over-year, prices rose 1.3% in April, 2.2% in March, 2.7% in February, and 3.9% in January. In dollar terms, the median home price went up $3,829 from May of last year to May of this year, from $385,000 to $388,829. Prices have increased for 23 consecutive months on a year-over-year basis, and the rate of increases peaked at 5.6% in the second half of 2024.
Easing price pressures offers some good news for homebuyers. In addition, May Homes.com data showed the inventory of homes for sale increased 17.2% compared to May 2024 to the highest level since October 2019. This rise in inventory and softening price pressures indicate a transition to a buyer’s market, especially in several key metros in the Sun Belt region. However, affordability continues to be challenging as mortgage rates remain elevated.
The highest price appreciation is concentrated in the Northeast and parts of the Midwest. However, the rates of price growth even in those markets have moderated. In April, the top three markets by price growth saw rates of increase between 10.5% and 10.8%. In May, the growth rates for the top three markets slowed to between 7.4% and 7.6%. The geography of the major metros with negative or flat price growth has broadened and now includes Texas, parts of Florida, parts of California, as well as Denver and Atlanta.
The data shared in this report could change slightly once all home sales are accounted for. Erika Ludvigsen, National Director of Residential Analytics at Homes.com, is available for interviews to provide insights on these data and the residential real estate market in general. For more information and insights on the latest home buying and selling market trends, visit Homes.com.
About Homes.com
Homes.com is the fastest-growing residential real estate marketplace and the second largest portal in the United States. Homes.com is a brand of CoStar Group (NASDAQ: CSGP), a global leader in commercial real estate information, analytics, and online marketplaces, which acquired the platform in 2021.
Homes.com is the first major U.S. real estate portal to focus first on helping homeowners and their agents leverage the marketing power of the internet to bring more potential buyers to their listings. Homes.com’s unparalleled content and search capabilities bring millions of buyers and sellers to the site where they can seamlessly connect with agents. On average, Homes.com’s Members are winning 58% more listings* because they offer the home sellers a real estate portal that works for them, not against them.
The Homes.com Network reached an audience of 104 million average monthly unique visitors in the first quarter ending March 31, 2025.** Consumer brand awareness skyrocketed from 4% to 33% in just one year since CoStar Group launched the industry’s largest marketing campaign to date in February 2024, reintroducing the platform to the market. For more information, visit Homes.com.
*Based on internal analyses comparing Members to non-Members on Homes.com.
** Homes.com Network (which includes Homes.com, the Apartments Network, and the Land Network) average monthly unique visitors for the quarter ended March 31, 2025, according to Google Analytics.
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 130 million average monthly unique visitors in the first quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
Contacts
News Media Contact
Matthew Blocher
CoStar Group
(202) 346-6775
mblocher@costargroup.com
