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

Core Insights - The housing market is experiencing a significant deceleration, with the National Composite Index showing only a 1.3% annual gain in September 2025, the weakest since mid-2023 [3][9] - National home prices are lagging behind inflation, with September's Consumer Price Index (CPI) exceeding housing appreciation by 1.7 percentage points, marking the widest gap since June [3][9] - All 20 tracked metropolitan areas reported month-over-month declines in September, indicating broad-based weakness in the housing market [6][8] Year-over-Year Performance - The S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 1.3% annual increase for September, down from 1.4% in August [9] - The 10-City Composite showed a 2.0% annual increase, down from 2.1%, while the 20-City Composite posted a 1.4% increase, down from 1.6% [9][12] Regional Analysis - Chicago led with a 5.5% annual gain, followed by New York at 5.2% and Boston at 4.1%, indicating strong performance in the Northeast and Midwest [4][10] - Conversely, Tampa experienced a 4.1% annual decline, marking the sharpest drop among tracked metros, with Phoenix, Dallas, and Miami also showing negative annual returns [4][10] Monthly Performance - In September, the U.S. National Index reported a -0.3% change before seasonal adjustment, while the 10-City and 20-City Composite Indices both reported -0.5% [11] - After seasonal adjustment, the U.S. National Index saw a slight increase of 0.2%, while the 20-City Composite posted a 0.1% gain [11][16] Market Dynamics - The current market conditions reflect persistent headwinds due to elevated mortgage rates, which remained near 6.3% in late September, affecting affordability and demand [6][9] - Over the past six months, national home prices have only risen by 0.4%, indicating a broad-based deceleration in price growth across most regions [7][9]