Home values fell in real terms for the 11th consecutive month, according to the latest S&P Cotality Case-Shiller National Home Price NSA Index. While home prices posted an annual gain of 0.8% during April, inflation in the same period was 3.8%, eroding inflation-adjusted housing wealth.
Across markets analyzed, a nearly nine percentage point gap separated April’s strongest market (Chicago) and its weakest (Seattle), highlighting a wider regional divergence in home price trends.
“Geographic dispersion remains pronounced,” said Nicholas Godec, head of fixed income tradeables and commodities at S&P Dow Jones Indices. “Midwest and Northeast markets are still leading moderate growth, while many Sunbelt and Western metros see ongoing declines.”
Chicago posted a 6.5% annual gain in home prices, followed by New York (+3.8%) and Cleveland (+3.2%). Seattle (-2.3%), Denver (-1.8%), Tampa (-1.8%), Phoenix (-1.7%), and Dallas (-1.6%) were among the notable markets to post annual declines in home prices.
The 10-City Composite index saw an annual increase of 1.8%, up from 1.5% in the previous month. The 20-City Composite posted a year-over-year increase of 1.1%, up from 0.9% a month ago.
After seasonal adjustment, the U.S. National and 20-City Composite Indices reported monthly decreases of 0.1% and 0.04%, while the 10-City Composite Index posted a 0.04% gain.
“The affordability pinch remains a key headwind,” Godec said. “After dipping below 6% earlier this year, 30-year mortgage rates climbed back to 6.3% in April, keeping financing costs elevated. In this higher-rate environment, home price growth remains constrained, with housing largely treading water in nominal terms and falling in real terms.”
