U.S. Home Prices Slip; Annual Growth Slowest Since 2023

S&P Case‑Shiller data show U.S. home prices slipped 0.3% in August from July, producing a 1.5% year‑over‑year gain — the smallest annual increase in more than two years and below the roughly 3% inflation rate, eroding homeowners’ real equity. Mortgage rates above 6.5% continue to weaken buyer demand and slow price growth. Nearly all of the top 20 metropolitan areas posted monthly declines (Chicago was the lone monthly gainer); New York led year‑over‑year gains at 6.1%, while Tampa fell the most at −3.3% and San Diego recorded its fourth straight monthly drop. Redfin reports the U.S. median sale price was $439,000 in August (slipping to $436,000 in September), existing‑home closings rose to about 4.2 million in August, and fewer homes sold above asking with larger typical discounts. S&P analysts characterize the trend as a move toward a new, more sustainable equilibrium after rapid pandemic appreciation, even as lagging price growth has reduced real homeowner equity.