BELOW SUPERNAV drop zone ⇩

WC-2871

test WC-2871 ⇩

Home prices could see ‘bumpy’ road ahead, analyst says

In this Feb. 12, 2020, file photo, a housing development stands in El Dorado Hills, Calif. California. (AP Photo/Rich Pedroncelli, File)

WC-2871 MAIN AREA TOP drop zone ⇩

Mortgage Calculator

This calculator helps you estimate your monthly mortgage payment. It adds up the loan payment (principal + interest), property tax, and insurance. The loan payment is spread out over the years of your loan term.

This is the total amount you're borrowing from the bank.
This is the yearly interest rate on your loan.
This is how long you'll take to repay the loan.
This is the yearly tax you pay on your property.
This is the yearly cost to insure your home.

Monthly Payment Breakdown

Principal and Interest: $

Property Tax: $

Homeowners Insurance: $

Total Estimated Monthly Payment: $

AUTO TEST CUSTOM HTML 20250220105437

AUTO TEST CUSTOM HTML 20250220115833

(TheRealDeal) — After months of U.S. home prices rapidly accelerating, new figures show the growth is slowing — but that doesn’t necessarily mean bargain hunters should whip out their wallets.

U.S. home prices rose 19.8 percent year-over-year in August, after July’s 19.7 percent annual increase, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The leveling off comes after four straight months of record-setting, increasing growth.

“August data also suggest that the growth in housing prices, while still very strong, may be beginning to decelerate,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices.

Buyers should be wary, index co-creater Robert Shiller wrote in Project Syndicate on Monday. Purchasing in booming locations may not be a safe long-term bet, he said.

“Even at currently elevated U.S. home-price levels, buying still makes sense for those who are set on ownership,” Shiller wrote. “But buyers need to be sure that they can accept what could be a rather bumpy and disappointing long-term path for home values.”

The bursting of the housing bubble that triggered the Great Recession saw national home prices fall 36 percent from December 2005 to February 2012. (They have since risen 71 percent.) But that isn’t the only example of declining home values.

Shiller cited data that showed that U.S. home prices, adjusted for inflation, were often lower in the 1990s than they were a century earlier. The drop came as cities spread out to cheaper land and homebuilding technology improved.

For buyers and sellers focused on today, the August pause in price-growth acceleration was similar across two other Case-Shiller indices: the 10-city composite, which rose by 18.6 percent, and the 20-city composite, which rose by 19.7 percent. Both figures were less than their July gains.

Experts credit the market’s rise in part to buyers’ response to the coronavirus pandemic as they migrated from urban apartments to farther-out homes. More data is needed to determine if the demand surge is attributable to households advancing their homebuying plans — causing purchases to bunch up — or to changes in location preferences.

Phoenix and San Diego saw the highest year-over-year gains in home prices in August, increasing by 33 percent and 26.2 percent, respectively. Tampa replaced Seattle at No. 3, with prices increasing by 25.9 percent.

Price growth was strongest in the Southwest, though every region saw double-digit gains.

Case-Shiller’s national index is 45.5 percent higher than its previous peak in July 2006. Only eight of the cities in the 20-city index reported higher year-over-year price increases in August than in July.

Your Money

Copyright 2025 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Fog

la

52°F Fog Feels like 52°
Wind
3 mph E
Humidity
92%
Sunrise
Sunset

Tonight

A few clouds. Low 51F. Winds light and variable.
51°F A few clouds. Low 51F. Winds light and variable.
Wind
2 mph NNE
Precip
2%
Sunset
Moon Phase
Waning Crescent