Home prices continued to rise in March, according to the latest S&P CoreLogic Case-Shiller data, albeit at a slight decrease from the previous reading in February.
The S&P CoreLogic Case-Shiller US National Home Price NSA Index reported a 3.4% annual return for March, down from a 4% annual gain in February. The 10-City Composite saw an annual increase of 4.8%, down from a 5.2% annual increase in the previous month, while the 20-City Composite posted a year-over-year increase of 4.1%, down from a 4.5% increase in the previous month.
The pre-seasonally adjusted US National, 10-City Composite, and 20-City Composite Indices saw slight upward trends in March, posting gains of 0.8%, 1.2%, and 1.1%, respectively. After the seasonal adjustment, the US National Index posted a decrease of -0.3% while the 10-City Composite Index recorded a 0.01% increase and the 20-City Composite Index presented a -0.1% decrease.
New York City again reported the highest annual gain among the 20 cities with an 8% increase in March, followed by Chicago and Cleveland with annual increases of 6.5% and 5.9%, respectively. Tampa posted the lowest return, falling 2.2%
Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, observed, “Looking at the market environment, affordability remained severely constrained, though it did not worsen materially in early 2025 as borrowing costs stabilized. Mortgage rates hovered in the mid-6% range throughout March, keeping monthly payment burdens near multi-decade highs relative to incomes. This continued to weigh on buyer demand, but persistent supply shortages helped counteract the headwinds. Many existing homeowners remained reluctant to sell and give up low pandemic-era mortgage rates, and new construction activity stayed limited – a combination that kept inventory levels extremely tight. The scarcity of homes for sale offset softer demand and helped support home prices, enabling a broad seasonal uptick despite the challenging affordability backdrop.”
