US Home Price Growth Slows to Over Two-Year Low

The S&P CoreLogic Case-Shiller 20-City Home Price Index rose 1.6% year-on-year in August 2025, marking the smallest annual increase since July 2023 and falling short of market expectations of a 1.9% gain. "August's data shows US home prices continuing to slow, with the National Index up just 1.5% year-over-year," said Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices. "This marks the weakest annual gain in over two years and falls well below the 3% inflation rate. For the fourth straight month, home values have lost ground to inflation, meaning homeowners are seeing their real wealth decline even as nominal prices inch higher. New York once again led all 20 cities, posting a 6.1% annual increase in August, followed by Chicago and Cleveland with gains of 5.9% and 4.7%, respectively. At the other end of the spectrum, Tampa recorded the weakest performance, with prices falling 3.3% year-over-year.