- The S&P CoreLogic Case-Shiller U.S. National Home Price Index posted a 3.4% annual gain in March 2025, down from 4% in February.
- New York, Chicago, and Cleveland led the annual home price increases, while Tampa saw a decline.
- The housing market contends with affordability challenges due to mortgage rates in the mid-6% range.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index revealed a 3.4% annual gain for March 2025, marking a slowdown from the 4% rise in February. This deceleration reflects a broader cooling trend in home price appreciation. Despite the annual slowdown, the month-over-month data showed an increase of 0.8% before seasonal adjustment, although it dipped by 0.3% after adjustment, highlighting typical spring seasonality.
Among the 20 cities tracked by the index, New York reported the highest annual gain with an 8% increase, leading the pack, followed by Chicago at 6.5% and Cleveland at 5.9%. On the downside, Tampa was the only metro area to record a year-over-year decline, with a 2.2% decrease.
The housing market continues to grapple with affordability issues driven by mortgage rates in the mid-6% range. However, the tight inventory levels alongside seasonal demand have helped sustain price levels, preventing significant price drops. The market scenario reflects an adjustment to post-pandemic realities with pronounced regional variations influencing local housing dynamics.
Overall, the data indicates that while U.S. home prices remain at record highs, the current market is marked by a balance between limited supply and affordability constraints, underlining the sensitivity of home prices to financing costs and regional economic conditions.
