US Home Price Growth Slows To Two-Year Low Amid Market Cooling

U.S. home price growth has significantly slowed, with the S&P CoreLogic Case-Shiller National Home Price Index showing a 1.7% annual increase in July, down from 1.9% in June, marking one of the weakest rises since July 2023. Despite nominal gains, when adjusted for inflation, home values have stagnated or declined in real terms for three consecutive months, signaling a loss in homeowners' real equity compared to the rapid price surges during the pandemic. This slowdown is evident across major housing markets, with New York City leading annual gains at 6.4%, while cities like Tampa and Phoenix have seen price declines due to affordability challenges and cooling demand. The 10-city and 20-city composite indexes also reflect this trend, showing slower growth and slight monthly price drops. Some recovery in home sales occurred in August ahead of an anticipated Federal Reserve interest rate cut, but overall, the market remains subdued with potential for further price deceleration linked to broader economic indicators such as Federal Reserve bank reserves. Analysts view this shift as a transition from the pandemic-driven housing boom to a more volatile and plateaued market environment.