U.S. domestic price growth hit record high in May

Home price growth hit a new record in May as low mortgage interest rates continued to stimulate strong home buying demand.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas nationwide, rose 16.6% in the year ending May, against 14.8% the previous month. May marked the highest annual rate of price growth since the index began in 1987.

Home price growth has accelerated over the past year as buyers compete fiercely for a limited number of homes on the market. The Covid-19 pandemic prompted households to seek more living space and interest rates have held near record highs. Many homes receive multiple offers and sell for more than the asking price.

The median selling price of existing homes in June rose 23.4% from the previous year to a record $ 363,300, the National Association of Realtors said earlier this month.

“It’s an incredibly strong housing market,” said Hilla Sferruzza, chief financial officer of home builder Meritage Homes Corp.