The pace of U.S. home-price growth fell for the fourth month in a row in May, dipping to its slowest rate since July 2023 as markets continued “the slow unwind” of pandemic-era appreciation, S&P Dow Jones Indices said. 

Specifically, the S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 2.3% year over year, down from the 2.7% annual gain measured in April. Month over month, the index rose 0.4%. 

The 10-city composite index rose 3.4% year over year, down from a 4.1% increase in April, while the 20-city composite rose 2.8%, down from 3.4% in April.   

“Seasonal momentum is proving weaker than usual, and the slowdown is now more than just a story of higher mortgage rates,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “It reflects a market recalibrating around tighter financial conditions, subdued transaction volumes and increasingly local dynamics. With affordability still stretched and inventory constrained, national home prices are holding steady, but barely.” 

In Dallas, home prices slid 0.6% year over year in May, accelerating from a 0.2% decrease in April. 

“Persistently high mortgage rates and economic uncertainty led to a 2025 homebuying season defined by low activity,” Cotality Chief Economist Selma Hepp said. “Potential buyers seem weighted down by concerns around financial stability, policy uncertainty and job security. 

“Despite inventory increases that tilted many markets in favor of buyers, dampened homebuying demand resulted in overall weak sales activity. Similarly, there are muted sales expectations for the rest of the year.”