S&P Dow
Jones Indices (S&P DJI) announced on Tuesday its Case-Shiller Home Price
Index, which tracks home prices in 20 U.S. metropolitan areas, increased 4.1
per cent y-o-y in March, following an unrevised
4.5 per cent y-o-y soar in February. This marked the weakest annual rise in house prices since September
2023 (+4.0 per cent).
Economists had forecast
a surge of 4.5 per cent y-o-y.
According to
the report, 19 of 20 cities posted
y-o-y gains in home prices in March, led by New York (+8.0 per cent
y-o-y), Chicago (+6.5 per cent y-o-y), and Cleveland (+5.9 per cent y-o-y).
Meanwhile, Tampa (-2.2 per cent y-o-y) was the only city that recorded y-o-y decline
in home prices.
The
S&P/Case-Shiller U.S. National Home Price Index, which measures all nine
U.S. census divisions, jumped 3.4 per cent y-o-y in March, following a 4.0 per cent y-o-y climb in the previous month.
On a m-o-m
basis, the U.S. National Index increased 0.8 per cent, and the 20-City
Composite Index soared 1.1 per cent.
Commenting on
the latest data, Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income
Tradables and Commodities at S&P Dow Jones Indices, noted that home price
growth continued to decelerate on an annual basis in March, even as the market experienced
its strongest monthly gains so far in 2025. “This divergence between slowing
year-over-year appreciation and renewed spring momentum highlighted how the
housing market shifted from mere resilience to a broader seasonal recovery,” he
added. “Limited supply and steady demand drove prices higher across most
metropolitan areas, despite affordability challenges remaining firmly in place.”