S&P COTALITY CASE-SHILLER INDEX REPORTS ANNUAL GAIN IN AUGUST 2025

Core Insights - U.S. home prices are experiencing a slowdown, with the National Index showing a year-over-year increase of only 1.5%, the weakest gain in over two years, and below the 3% inflation rate [2][6][9] - The housing market is adjusting after a pandemic boom, with high mortgage rates above 6.5% impacting buyer demand and limiting transaction activity [5][9] Year-over-Year Summary - The S&P Cotality Case-Shiller U.S. National Home Price NSA Index reported a 1.5% annual gain for August, down from 1.6% in the previous month [6][9] - The 10-City Composite showed a 2.1% annual increase, down from 2.3%, while the 20-City Composite posted a 1.6% increase, down from 1.8% [6][9] Monthly Summary - In August, the National Index fell by 0.3%, with the 10-City and 20-City Composites both declining by 0.6% [10][9] - Nineteen out of twenty cities experienced price declines before seasonal adjustment, indicating broad weakness in the market [4][9] Regional Performance - New York led with a 6.1% annual gain, followed by Chicago at 5.9% and Cleveland at 4.7% [4][7] - Conversely, Tampa saw a decline of 3.3%, with other cities like Phoenix and Miami also experiencing losses of 1.7% [4][7] Market Dynamics - The combination of high financing costs and near-record high prices is limiting transaction activity, particularly in markets that saw sharp gains during the pandemic [5][9] - The adjustment in the housing market may lead to a more sustainable environment, but current conditions are causing homeowners to see their real equity erode [5][9]