S&P CORELOGIC CASE-SHILLER INDEX RECORDS 3.4% ANNUAL GAIN IN MARCH 2025

Core Insights - The S&P CoreLogic Case-Shiller Indices reported a 3.4% annual gain in U.S. home prices for March 2025, a decrease from 4.0% in February 2025 [1][5][10] - The 10-City Composite Index showed a 4.8% annual increase, down from 5.2%, while the 20-City Composite Index recorded a 4.1% increase, down from 4.5% [2][5] - New York led the 20 cities with an 8% annual gain, followed by Chicago at 6.5% and Cleveland at 5.9%, while Tampa experienced a decline of 2.2% [2][6] Year-over-Year Trends - The U.S. National Home Price NSA Index reported a 3.4% annual return for March, down from 4% in February [2] - The 10-City Composite Index increased by 4.8% year-over-year, while the 20-City Composite Index rose by 4.1% [5] - The majority of the annual appreciation was front-loaded, with only 0.9% of the increase occurring in the last six months [5] Month-over-Month Trends - Month-over-month, the U.S. National Index saw a 0.8% increase, the 10-City Composite Index rose by 1.2%, and the 20-City Composite Index increased by 1.1% [3][7] - After seasonal adjustment, the U.S. National Index decreased by 0.3%, while the 10-City Composite Index saw a slight increase of 0.01% and the 20-City Composite Index decreased by 0.1% [3][7] Market Analysis - Home price growth is decelerating annually, despite strong monthly gains, indicating a shift towards a broader seasonal recovery [4][10] - Limited supply and steady demand are driving prices higher, although affordability challenges persist [4][9] - The reluctance of existing homeowners to sell due to low mortgage rates and limited new construction activity has kept inventory levels tight, supporting home prices [8][9] Regional Price Trends - New York reported the highest annual gain at 8%, while Dallas had a minimal increase of 0.2%, and Tampa was the only city to post a year-over-year decline at -2.2% [6][9] - Eighteen out of twenty metro areas experienced positive monthly price gains before seasonal adjustment, with Cleveland, Seattle, and New York leading the increases [7][9] Affordability and Market Environment - Affordability remains constrained, with mortgage rates in the mid-6% range, keeping monthly payment burdens high relative to incomes [8] - The combination of persistent supply shortages and high borrowing costs continues to impact buyer demand [9][10]