US home prices rise 2.1% but have fallen in real terms for 15 months
The Case-Shiller index rose 2.1% year on year in August 2026, below inflation of 3.4%. Chicago and New York led gains, while Seattle posted the steepest decline.
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)
U.S. home prices continue to rise, but more slowly than inflation. The S&P Cotality Case-Shiller national index rose 2.1% year on year in August 2026, after 1.9% in July. The 20-city composite gained 2.7% and the 10-city composite 3.6%. With inflation at 3.4% in August, the real value of homes fell for a 15th straight month, the data show.
Prices rose most in Chicago (6.7%), New York (6.2%) and Cleveland (4.3%). The biggest declines were in Seattle (2.0%), Las Vegas (1.3%) and Denver (0.8%). Rebecca Kaufman of S&P Dow Jones Indices cited inflation, Brent crude near $100 a barrel and mortgage rates in the mid-to-high 6% range as pressures on households.
For newly built homes, the median price is falling. New home sales ran at a seasonally adjusted annual rate of 676,000 in September 2026, down 0.6% from August, according to the U.S. Commerce Department. The median price of a new home was $400,400, down 3.9% from a year earlier. The average 30-year fixed mortgage rate stood at 7.32% last week, according to mortgage finance company Freddie Mac.
This article is for information only and is not legal, tax, financial or medical advice. Figures as of the date stated.