【World Property Journal】U.S. Home Prices Post Biggest Drop in a Decade in May
【World Property Journal】U.S. Home Prices Post Biggest Drop in a Decade in May
According to new national data from Realtor.com, U.S. home prices recorded their sharpest year-over-year declines in a decade in May 2026 as persistent inflation continued to weigh on the housing market, even as increased buyer activity and seller pragmatism signaled a gradual rebalancing.
The housing sector, like the broader economy, confronted renewed inflationary pressures last month. April's consumer price index registered 3.8%, fueled in part by geopolitical tensions stemming from the Iran conflict, while nowcasts for May point to a further rise toward 4.2%. Higher inflation erodes consumer purchasing power while simultaneously lifting Treasury yields and mortgage rates. Average 30-year mortgage rates climbed from 6.30% to 6.53% during May, reversing much of the relief seen in April and adding friction to what is traditionally the busiest season for home sales.