U.S. home prices’ sluggish incline slowed even more in September as the S&P Cotality Case-Shiller U.S. National Home Price NSA Index posted a 1.3% annual gain, down from August’s 1.4% rise.
“This marks a continued slide from August’s 1.4% increase and represents a stark contrast to the double-digit gains that characterized the early post-pandemic era,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “National home prices continued trailing inflation, with September’s CPI running 1.7 percentage points ahead of housing appreciation. This marks the widest gap between inflation and home-price growth since the two measures diverged in June, with the spread continuing to widen each month.”
September marked the fourth consecutive month that inflation outpaced home prices.
“A deeper look at momentum shows clear weakening. Over the past six months, national home prices have risen just 0.4%, a gain that is only marginal in nominal terms and negative in real inflation-adjusted terms,” added Godec. “The deceleration from early-2025 strength has been broad-based, with only seven of the 20 metros—Chicago, Cleveland, Minneapolis, Boston, New York, Charlotte, and Atlanta—posting positive price appreciation over the trailing six-month period. Most Sun Belt and Western markets experienced outright declines, underscoring how affordability pressures and higher mortgage rates have eroded momentum across much of the country.”
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