Home Price Growth Remains Muted Despite Spring Gains

In April, the S&P Cotality Case-Shiller U.S. National Home Price Index recorded a 0.8% annual gain, up slightly from a 0.7% rise in March. The 10-City Composite increased 1.8%, up from 1.5% the previous month, while the 20-City Composite moved up 1.1% year-over-year, up from 0.9% in March. Chicago again posted the highest annual gain at 6.5%, followed by New York at 3.8% and Cleveland at 3.2%. Meanwhile, Seattle again posted the lowest annual return, with prices falling 2.3%.

On a month-over-month basis, the U.S. National Index advanced 0.8% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both stepped up, rising 1.1% and 1.0%, respectively. After seasonal adjustment, the 10-City Composite inched up less than 0.1%, while the National Index and 20-City Composite both declined, edging down 0.1% and less than 0.1%, respectively. The Northeast and Midwest continued to outperform other regions, but underlying softness could disrupt seasonal strength. At the same time, in addition to Seattle, Denver (down 1.9%), Tampa (down 1.8%), Las Vegas (down 1.7%), Phoenix (down 1.7%), Dallas (down 1.6%), Los Angeles (down 0.5%) and Atlanta (down 0.1%) exhibited declines in April.

The spring season continued to see a slight lift in prices as 11 of the 20 major U.S. housing markets recorded year-over-year price growth in April. Climbing mortgage rates continued to hurt affordability and stunt demand. Overall, home price growth remained constrained and continued to fall in real terms as inflation remained elevated.