Home prices fail to keep up with inflation as values continue to stall

Home price growth is slowing, with the S&P Case-Shiller Index showing a 1.9% annual increase and the FHFA House Price Index flat in Q2 2025. Prices are not keeping pace with inflation, marking a shift from pandemic-era rapid gains. While 46 states saw price rises, some western markets like San Diego and San Francisco experienced declines. Weak demand persists, and the market may be entering a correction toward more sustainable growth aligned with economic fundamentals.