US Home Price Gains Slow to Smallest Increase Since 2023

U.S. home price growth continued to slow in May 2025, with the S&P CoreLogic Case-Shiller National Home Price Index showing a 2.3% annual gain, the smallest increase since July 2023. The 20-city composite index rose 2.8% year-over-year, down from 3.4% in April, while the 10-city composite saw a 3.4% gain, also down from 4.1%. New York led with a 7.4% annual increase, whereas Tampa experienced a 2.4% decline, marking its seventh straight month of falling prices. The modest spring market gains were not enough to suggest sustained acceleration, and most cities showed waning momentum. Additionally, median existing home prices stood at $423,700 in May, reflecting the ongoing challenges posed by high mortgage rates and affordability issues. Experts note that home prices are not included in consumer inflation measures, complicating Federal Reserve policy responses, with affordability likely to improve only if mortgage rates decline and home prices fall significantly.