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In September, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 1.3% annual gain, the weakest growth since mid-2023. The 10-City composite saw an annual increase of 2.0% in September, down from 2.1% the previous month, while the 20-City composite rose 1.4% year-over-year, down from 1.6%. Among the 20 cities, Chicago posted the highest annual gain at 5.5%, followed by New York at 5.2% and Boston at 4.1%. Tampa again posted the lowest annual return, with prices falling 4.1%.

On a month-over-month basis, the U.S. National Index declined 0.3% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both fell 0.5%. After seasonal adjustment, the U.S. National Index and 10-City Composite both grew 0.2%, while the 20-City Composite inched up 0.1%.

The combination of high financing costs and prices remaining near record highs continues to limit activity. Before seasonal adjustment, all 20 cities saw price declines in September. The Northeast and Midwest, relying on strong job markets, continue to outperform other regions. Meanwhile, the Sun Belt and Western markets continued declining, including Tampa (down 4.1%), Phoenix (down 2.0%), Dallas (down 1.3%) and Los Angeles (down 1.3%).

Despite strength earlier this year, high mortgage rates have eroded momentum across most regions. Home price gains continue to trail inflation, and the gap is the widest seen since the two measures diverged in June. The housing market appears to have found a new equilibrium of minimal price growth and declines in some regions.