04:03 PM EDT, 06/04/2024 (MT Newswires) -- US home price growth per square foot outpaced the increase in overall listing prices last month in a signal that smaller and more affordable inventory is hitting the market, though monthly payments rose, according to Realtor.com, which is operated by News Corp. ( NWSA )' (NWS) subsidiary Move Inc.

The median price of homes for sale ticked up 0.3% year over year to $442,500 in May while the list price per square foot, which Realtor.com said "can be seen as a better indication of home value," advanced by 3.8%, its report showed Tuesday.

"The difference between percent change in median listing price and median price-per-square foot shows that, in this time frame, the share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further," Realtor.com wrote in the report.

Inventory rose for the seventh month in a row in May as more affordable homes entered the market. There was a nearly 47% year-over-year increase in homes priced in the $200,000 to $350,000 range last month, surpassing the month prior's high of 41% growth.

While increased inventory of affordable homes is welcomed news for prospective buyers, affordability continues to be a challenge. The typical monthly mortgage payment for the average home grew by roughly $158 year over year in May, which lifted the required household income to purchase the median-priced home by $6,400 to $119,700.

Since May 2019, the list price per square foot has soared nearly 53% compared with a nearly 38% rise for overall listing prices. Through May's data, nearly half of the 50 metros tracked by the real estate brokerage have seen increases in median price per square foot of at least 50% since 2019.

The data suggests that average home values have risen at more than double the roughly 23% pace of consumer price inflation over the same period, according to Realtor.com Chief Economist Danielle Hale.

Active listings jumped 35% year over year in May while new listings grew 6.2%. From 2019, active and new listings were down 33% and 26%, respectively.

Price: 27.88, Change: -0.16, Percent Change: -0.57