U.S. home prices rose 1.1% year-over-year in May but inflation ran roughly three percentage points ahead at 4.2%, according to the S&P Cotality Case-Shiller U.S. National Home Price NSA Index, marking the 12th consecutive month that home values fell in real terms.
Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices, said the market remains noticeably weaker than a year ago, when the national index was up 2.4%. She pointed to a widening regional split: for the third straight month, Chicago led all metros with a 6.9% annual increase, followed by New York (4.2%) and Cleveland (3.1%), while Las Vegas posted the largest decline at -1.9%, with Seattle, Denver and Tampa also falling. Northeast and Midwest metros generally outpaced the national average, Kaufman said, while much of the West and Sunbelt stayed under pressure.
Kaufman tied the softness to affordability, noting 30-year mortgage rates reached 6.5% in May and elevated inflation continues to weigh on both financing and living costs.
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