#United States #New York #Home Prices #S&P Dow Jones #Cotality Case-Shiller

S&P Cotality Case-Shiller Index Report for August 2025

The latest report from the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has revealed a 1.5% annual gain for August 2025. This figure marks a slight decline from the 1.6% increase recorded in July, indicating a more tempered growth trend in the current housing market.

Throughout August, housing wealth has experienced a consistent erosion in real terms for the fourth consecutive month. The 1.5% growth has fallen short of the 3% inflation rate, signaling that homeowners are facing decreasing real value even as nominal home prices rise.

According to Nicholas Godec, CFA, and Head of Fixed Income Tradables Commodities at S&P Dow Jones Indices, August’s data illustrates a continued slowdown in home prices, with the national index marking its weakest annual gain in over two years. Most of the annual increment was registered in recent months, with gains noted primarily over the past six months, while earlier periods showed stability rather than growth.

In an examination of urban markets, New York reported the highest annual gain at 6.1%, followed closely by Chicago with 5.9% and Cleveland at 4.7%. Contrarily, Tampa saw a decline of 3.3%, with other cities like Phoenix and Miami also reporting drops, showing a pattern of uneven performance across different regions.

Moreover, the report highlighted that nineteen out of twenty major metropolitan areas experienced month-over-month declines in home prices in August. With Chicago being the sole city to show an uptick, this suggests that the weakness in the housing market extends beyond ordinary seasonal fluctuations.

The National Index fell by 0.3% for August, while both the 10-City and 20-City Composites saw declining prices of 0.6%. These figures signify a considerable challenge as mortgage rates persist above 6.5%, adversely impacting buyer demand, particularly during a period that typically sees increased activity during summer months.

Godec emphasizes that the combined effect of heightened borrowing costs and prices that remain near record heights is stifling transaction volumes. Markets that had previously experienced rapid price surges during the pandemic are now undergoing significant corrections. In contrast, more affordable regions with stable local economies are generally performing better amidst this housing market reset.

As the housing market seeks to achieve a new equilibrium post-pandemic, the ongoing price growth which trails behind inflation raises concerns about long-term sustainability. For homeowners, this trend means a potential decline in their real equity, whereas prospective buyers face the daunting combination of high prices alongside elevated borrowing costs.

In summary, the S&P Cotality Case-Shiller Index for August 2025 demonstrates the complexities of the current housing landscape in the U.S. The recent data serves as a reminder of the market's adjustment phase post-pandemic, and its implications for both current homeowners and potential buyers seeking to navigate a challenging yet evolving market.