U.S. home values grew by 1.4% from April to May, the strongest monthly appreciation since last June. The home value as of May was $346,856, up 0.9% year-over-year.

Senior Economist Jeff Tucker noted the current market continues to be driven by an abnormally large absence of existing homes being listed for sale – the number of homes for sale in May was 3.1% lower than one year ago — the former low-water mark — and a 46% below the May 2019 inventory level.

“Many homeowners are still opting not to sell and give up historically low mortgage rates,” he said. “But those who do have been rewarded with bidding wars as buyers compete for limited options. Spring is traditionally the hottest time of year in the housing market, and 2023 has been no exception. Time will tell if seasonal price slowdowns arrive on time this year, later in summer.”