Despite rising at a faster annual pace than a month prior, home prices continued to decline in real terms in May, according to the S&P Cotality Case-Shiller Index released on Tuesday. 

The data for May shows that the index rose 1.1% annually to a reading of 335.1, up from a year-over-year increase of 0.8% in April. This however remained below the pace of inflation, which reached 4.2% in May, its highest level in over three years. 

“Even on a nominal basis, the market remains noticeably weaker than a year ago. In May 2025, the National Home Price Index was up 2.4% year over year,” Rebecca Kaufman, the associate director of commodities at S&P Dow Jones Indices, said in a statement.

On a monthly basis, the national index was up 0.6% from April. 

HousingWire Data shows softening home prices nationally

HousingWire Data, which is more up-to-date, reveals softer home price appreciation for the week ending on July 24, 2026. For this week, the median list price was $449,900, down 1.8% compared to a year ago and 2.1% compared to a month prior. 

Among some of the nation’s largest metros, as of the end of June 2026, HousingWire Data shows that Ocean City, New Jersey (+39.6%), Jackson, Michigan (+23.7%) and Champaign-Urbana, Illinois (+22.3%) have some of the largest annual median list price growth. 

Case Shiller city composite indexes

The 10-city composite index also showed a faster pace of home price appreciation in May, jumping 2.4% year-over-year compared to a 1.8% increase in April, coming in at a reading of 371.52. The 20-city index also recorded a stronger increase, jumping 1.6% annually compared to 1.2% a month prior to a reading of 348.62. Compared to April, both the 10-city and 20-city indexes reported a 0.9% monthly increase. 

Among the 20 cities examined, Chicago posted the largest annual price gain in May at 6.9%, followed by New York (4.2%) and Cleveland (1.9%). At the other end of the spectrum, Seattle posted the largest annual price decline at 1.83%, followed by Denver (-1.75%) and Tampa (-1.63%). 

“The geographic dispersion of home price trends continues to persist,” Kaufman said. “While major metropolitan areas in the Northeast and Midwest recorded year-over-year gains exceeding the national average, many metropolitan areas in the West and Sunbelt regions remain under pressure. This divergence may reflect shifting post-pandemic housing dynamics, including a growing return-to-office mandate that appears to be supporting traditional urban markets.”

Looking ahead, despite his brand’s pending sales running ahead of a year ago, Mike Miedler, the president and CEO of CENTURY 21 Real Estate, noted that inventory has stopped growing after four straight years of increases. 

“That’s the story that could determine what happens next,” he said in a statement. “A buyer sitting on the sidelines for a better rate is betting against a market where the homes aren’t piling up to greet them when rates finally move.”