Case-Shiller home prices rise 1.1% in May, still lag inflation
The S&P Cotality Case-Shiller National Home Price Index shows a 1.1% increase year over year for May, reaching a reading of 335.1. While this indicates growth, it sits behind the 4.2% inflation rate for the same period. In real terms, homeowners are seeing price declines rather than gains.
On a monthly basis, the index rose by 0.6% from April. The 10-city and 20-city composite indexes also saw upward movement, with year-over-year gains of 2.4% and 1.6% respectively. Regional trends remain divided, as major markets in the Midwest and Northeast are outperforming the national average. Chicago led the growth with a 6.9% increase, while markets in the West and Sunbelt regions face ongoing pressure.
Recent data from HousingWire shows a softening in list prices nationally as of late July. Median list prices dropped 1.8% compared to last year and 2.1% compared to the prior month. Industry experts note that while pending sales remain steady, the lack of new inventory is a primary factor influencing the market. With buyers waiting for lower mortgage rates, the current supply levels could determine future price direction.