Home prices have followed a pattern so far this year and, according to the latest S&P Case-Shiller Home Price Indices, it shows no sign of changing. S&P’s index – considered among the leading measures of U.S. home prices – found prices up just 2.3 percent year-over-year through the end of May. That’s the slowest annual price increase in two years. It also follows the established pattern, according to Nicholas Godec, head of fixed income tradables & commodities at S&P Dow Jones Indices. “May’s data continued the year’s slow unwind of price momentum, with annual gains narrowing for a fourth consecutive month,” Godec said. “National home prices were just 2.3 percent higher than a year ago, the smallest increase since July 2023, and nearly all of that gain occurred in the most recent six months. The spring market lifted prices modestly, but not enough to suggest sustained acceleration.” In other words, home prices have been gradually slowing for most of this year and the pattern is likely to continue as the market recalibrates. (source)
