US home prices are showing signs of slowing down, with many markets experiencing a decline in value. The S&P CoreLogic Case-Shiller Index reported a 2.7% annual gain in April, the smallest increase since nearly two years ago.
High mortgage rates continue to weigh on the market, making it difficult for buyers to secure affordable loans. This has led to a shift away from previously hot markets like Tampa and Dallas, which are now seeing price drops. In contrast, markets like Chicago, Detroit, and the Midwest are seeing steady growth.
The rise in supply and slow demand have accelerated the cooling of home prices, but experts warn that significant declines are unlikely. Instead, housing supply remains severely constrained, with existing homeowners reluctant to sell at lower rates.
According to Nicholas Godec, head of fixed income at S&P Dow Jones Indices, this trend signals a maturing market driven by fundamentals rather than speculative fervor. The shift in regional leadership highlights the changing dynamics of the US housing market, with historically steady performers taking the lead.
Source: https://www.cnbc.com/2025/06/24/home-price-hikes-are-slowing-more-than-expected-.html