S&P CORELOGIC CASE-SHILLER INDEX RECORDS 2.3% ANNUAL GAIN IN MAY 2025

Core Insights - The S&P CoreLogic Case-Shiller Indices reported a 2.3% annual gain in U.S. home prices for May 2025, a decrease from 2.7% in April 2025 [1][5] - The 10-City Composite Index showed a 3.4% annual increase, down from 4.1%, while the 20-City Composite Index recorded a 2.8% increase, down from 3.4% [2][5] - New York led the 20 cities with a 7.4% annual gain, followed by Chicago at 6.1% and Detroit at 4.9%, while Tampa experienced the lowest return with a decline of 2.4% [2][6] Year-over-Year Analysis - The U.S. National Home Price NSA Index reported a 2.3% annual return for May, reflecting a narrowing trend in annual gains for four consecutive months [2][4] - The 10-City Composite and 20-City Composite both saw annual gains decrease to 3.4% and 2.8%, respectively [2][5] - Regional disparities were noted, with New York, Chicago, and Detroit showing strong gains, while several Western markets, including Los Angeles and San Francisco, reported minimal or negative growth [6] Month-over-Month Trends - The pre-seasonally adjusted U.S. National Index posted a 0.4% gain in May, while after seasonal adjustment, it showed a decrease of 0.3% [3][7] - All three headline indices (U.S. National, 10-City, and 20-City) reported a 0.4% increase on a non-seasonally adjusted basis, marking the slowest monthly gain since January [7] - The month-over-month trends indicated broad-based fatigue, with only four cities showing month-over-month acceleration [7] Market Dynamics - The slowdown in home price growth is attributed to tighter financial conditions, subdued transaction volumes, and local market dynamics, rather than solely higher mortgage rates [8] - Affordability issues and constrained inventory are contributing to the stability of national home prices, which are holding steady but barely [8]