S&P CORELOGIC CASE-SHILLER INDEX RECORDS 2.7% ANNUAL GAIN IN APRIL 2025

Core Insights - The S&P CoreLogic Case-Shiller Indices reported a 2.7% annual gain in U.S. home prices for April 2025, a decrease from 3.4% in March 2025 [1][2] - The 10-City Composite Index showed a 4.1% annual increase, down from 4.8%, while the 20-City Composite Index posted a 3.4% increase, down from 4.1% [2] - New York led the 20 cities with a 7.9% annual gain, while Tampa experienced the lowest return at -2.2% [2][6] Year-over-Year Performance - The U.S. National Home Price NSA Index recorded a 2.7% annual return in April, reflecting a broad-based deceleration in price gains [2][5] - The 20-City Composite Index increased by 3.4%, and the 10-City Composite Index rose by 4.1%, both significantly lower than their recent peaks [5] - Approximately 1.7 percentage points of the annual increase occurred in the last six months, indicating recent price momentum rather than sustained growth [5] Month-over-Month Performance - The pre-seasonally adjusted U.S. National Index saw a 0.6% gain in April, while both the 10-City and 20-City Composite Indices reported a 0.7% increase [3][7] - After seasonal adjustment, the U.S. National Index decreased by 0.4%, suggesting that the raw gain was weaker than typical spring patterns would predict [3][7] Regional Analysis - A significant shift in regional performance was noted, with New York, Chicago, and Detroit leading annual gains, contrasting with previous pandemic-era trends [4][6] - Tampa and Dallas were among the few metros to report annual declines, highlighting the impact of affordability constraints on previously overheated markets [6][9] - The market is increasingly driven by local fundamentals rather than national trends, indicating a transition to a more selective environment [10] Market Dynamics - Mortgage rates remained in the mid-6% range, contributing to high monthly payment burdens and limiting potential buyers [8] - Housing supply is constrained, with existing homeowners reluctant to sell at lower rates, maintaining a price floor in the market [9] - The current housing market is characterized by a transition from rapid price appreciation to moderate growth, suggesting a healthier trajectory [10]