The US housing market is showing signs of slowing down, with home prices rising only 2.7% in April compared to a year earlier. This is the smallest annual price gain in nearly two years, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The decline raises concerns that prices may be entering a sustained downturn due to near-7% mortgage rates.
Other recent data points also indicate a loss of momentum in the housing market. Sales of existing homes fell 0.7% in May from a year earlier, and median home sale prices rose only 0.7% year over year, marking the slowest growth since June 2023. In fact, prices were down on a year-over-year basis in 11 of the 50 most populous US metro areas.
Despite this decline, inventory remains relatively tight due to low mortgage rates, which may prevent prices from falling significantly. However, analysts warn that the weakness of recent price data means that an extended period of house price declines is becoming increasingly likely.
As the housing market transitions into a new era, local fundamentals are taking precedence over national trends. The era of rapid price appreciation appears to be over, and policymakers must now take steps to address the potential for widespread house price declines.
Source: https://www.axios.com/2025/06/24/housing-market-price-growth-april