The pace of United States home-price growth continued to slow in January, S&P Dow Jones Indices said, noting that “[p]rice levels remain elevated, but the rate of appreciation has slowed materially.” 

Specifically, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index rose 0.9% year over year in January, compared to a 1.1% gain in December. 

The 10-City Composite Index saw an annual increase of 1.7%, down from a 2.0% increase the previous month, while the 20-City Composite posted a year-over-year increase of 1.2%, down from a 1.4% rise in the previous month. 

“Splitting the year into two halves sharpens the picture,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “The National Index rose 2.2% over the first six months of the period, then fell 1.3% over the most recent six — a swing that explains why annual gains have compressed to under 1% despite prices remaining historically elevated.” 

S&P Dow Jones noted that inflation outpaced national home-price appreciation for the eighth month in a row, with the Consumer Price Index running 1.5 percentage points above the 0.9% annual gain.  

“In real terms, home values have declined modestly over the past year,” Godec said. 

In Chicago, January’s home-price index jumped a relatively high 4.63% year over year but dipped 0.13% month over month. 

“We are in a period of low sales and price growth that mirrors the disconnect between incomes and home prices seen during 20th Century recessions,” Cotality Principal Economist Thom Malone said. “This time, however, the dynamics are reversed: Rather than an economic collapse, a housing surge is waiting for the rest of the economy to catch up. While the 2026 spring homebuying season may spark some momentum, the most likely outcome is modest price growth as buyers and sellers remain at a standoff.”