U.S. home prices rose just 1.5% in August compared to a year earlier, marking the slowest pace of growth since 2023, according to the S&P CoreLogic Case-Shiller Home Price Index. This slowdown, down from July’s 1.7% increase, signals that the post-pandemic housing boom continues to lose momentum. In fact, nine of the 20 major metro areas tracked saw year-over-year price declines, and for the fourth consecutive month, home values failed to keep up with inflation. With inflation rising 2.9% during the same period, homeowners effectively lost purchasing power, while potential buyers gained more leverage as market conditions cooled.
The slowdown varies by region, with the Northeast and Midwest showing resilience while many Sun Belt and Western cities experience sharper corrections. New York led price growth at 6.1%, followed by Chicago and Cleveland, while markets like Tampa, Phoenix and Miami saw notable declines. Experts say that pandemic-era hotspots are facing the steepest price drops, while more affordable, stable regions remain stronger. The recent dip in mortgage rates, now averaging around 6.19%, the lowest in over a year, could further ease conditions for buyers. As inflation outpaces home value gains and borrowing costs fall, the U.S. housing market appears to be settling into a new phase of balance that favors patient, well-prepared buyers.
