Core Insights - The S&P CoreLogic Case-Shiller index reported a decline in U.S. home prices for the third consecutive month as of May, with a month-over-month decrease of 0.34%, matching April's decline and marking the largest single-month drop since December 2022 [1] - Year-over-year home price growth has slowed to 2.79%, the lowest level since August 2023, indicating a significant cooling in the housing market [1] - The overall national home price increase of only 2.3% compared to the previous year is the smallest since July 2023, with most of the gains concentrated in the last six months [3] Market Trends - Cities such as Denver, San Francisco, Dallas, and Tampa have experienced year-over-year price declines, with Tampa seeing a drop of 2.4% [4] - The relationship between home prices and Federal Reserve bank reserves is noted to be highly correlated, suggesting that home prices may remain low in the coming months before potentially rebounding [5] - The housing market has faced its worst spring in 13 years, with the number of home sales contracts signed from April to June reaching the lowest level since 2012 [7] Economic Factors - Concerns over the economic outlook, exacerbated by Trump's tariff policies and fears of job displacement due to artificial intelligence, have led to increased caution among potential homebuyers, further suppressing demand [7][8] - Despite a slight decrease in mortgage rates and a stabilization in home prices, uncertainty in the financial markets has made buyers hesitant, resulting in low transaction activity even amid price reductions [7]

Group 1 - The U.S. real estate market has experienced its weakest spring sales season in 13 years, with the number of signed home sales contracts from April to June reaching the lowest level since 2012 [1] - Despite a decrease in mortgage rates and a slowdown in home price growth, economic uncertainty driven by Trump's tariff policies has led potential buyers to adopt a wait-and-see approach [1][2] - Concerns about the future economic outlook have exacerbated the situation, with many buyers feeling anxious and cautious, further suppressing demand [2][3] Group 2 - The spring season, typically a peak time for real estate transactions, has seen low activity levels despite some price reductions in certain areas [2] - Sellers are increasingly withdrawing properties from the market to avoid selling at unfavorable prices, which limits the available inventory [2] - Affordability in the real estate market has reached its lowest level since the 1980s due to prolonged high borrowing costs, impacting buyer assumptions about refinancing [3]