News

In July, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 1.7% annual gain, one of the weakest annual price increases in the past decade. The 10-City Composite saw an annual increase of 2.3% in July, down from 2.7% the previous month, while the 20-City Composite rose 1.8% year-over-year, down from 2.2%. Among the 20 cities, New York again posted the highest annual gain at 6.4%, followed by Chicago at 6.2% and Cleveland at 4.5%. Tampa again recorded the lowest annual return, with prices falling 2.8%.

On a month-over-month basis, the U.S. National Index ticked down 0.2% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both decreased 0.3%. After seasonal adjustment, the National Index and the 10-City and 20-City Composites all fell 0.1%.

Short-term price movements in July underscore the housing market’s fragility. Geographic divergence continues to characterize changes as Northeastern and Midwestern markets, after seeing modest price growth, are now top performers. Sun Belt and Western markets are now faring worse, including Tampa (down 2.8%), Phoenix (down 0.9%), Miami (down 1.3%), San Diego (down 0.7%) and San Francisco (down 1.9%).

This housing cycle is showing signs of normalization with the ongoing rotation in regional performance. Stability is emerging as markets with strong local economies are thriving in a market more aligned with overall inflation. Furthermore, this new equilibrium points to a healthier trajectory for housing in the long run.