US home prices hit a record in May but decelerated from the previous month.

The S&P CoreLogic Case-Shiller National Home Price Index rose 5.9% over the last 12 months in May on a seasonally adjusted basis, down from a 6.4% annual gain in the previous month. Limited housing supply has recently pushed up home prices to new highs.

“While annual gains have decelerated recently, this may have more to do with 2023 than 2024, as recent performance remains encouraging,” said Brian Luke, S&P's head of commodities, real and digital assets, in a press release. “Our home price index has appreciated 4.1% year-to-date, the fastest start in two years. Covering the six-month period dating to when mortgage rates peaked, our national index has risen the past four months, erasing the stall experienced late last year."

The 20-city index — which tracks home prices in the 20 largest US metros — rose 6.8% in May on a yearly basis. That’s lower than the 7.3% annual gain in the month prior. Economists surveyed by Bloomberg were expecting a 6.5% annual increase.

New York, San Diego, and Las Vegas reported the highest year-over-year gains among the largest cities across the US in May at 9.4%, 9.1%, and 8.6%, respectively.

The new data comes as separate data indicates homebuyers are grappling with finding affordable options. Sales of existing homes slumped in June for the fourth consecutive month as high rates continued to pressure potential buyers, while new home sales hit a 7-month low.

The high-rate environment has affected sellers, too, as many are locked in at lower rates and reluctant to put their houses on the market.

Read more: Is this a good time to buy a house?

Meanwhile, homes were less affordable in May on a year-over-year basis, according to the National Association of Realtors (NAR) affordability indicator.

The index — which measures the likelihood that an average-income household can qualify for a loan on an average house in the region — fell to 93.1 in May from 99.6 a year ago. A score of 100 indicates that a family has enough to afford a home in the area. Anything below means affordability is limited.

Dani Romero is a reporter for Yahoo Finance. Follow her on X @daniromerotv.

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