Press Release
Surprise uptick in May US home price appreciation
The S&P Cotality Case-Shiller Home Price Index, formerly known as the S&P CoreLogic Case-Shiller Home Price Index, is a leading measure of U.S. residential real estate prices.
IRVINE, Calif., July 28, 2026 — U.S. home prices reversed course in May after months of deceleration. The national index saw its annual gain increase to 1.1%, with the 10-City and 20-City Composite indices posting stronger year-over-year increases of 2.4% and 1.6%, respectively.
Tracking year-over-year home price growth
Data source: S&P Cotality Case-Shiller Indices, not seasonally adjusted (July 28, 2026)
Month-over-month price appreciation
Data source: S&P Cotality Case-Shiller Indices, not seasonally adjusted (July 28, 2026)
"The May data reveals a market with potential for a seasonal rebound," said Thomas Malone, principal economist at Cotality."While May’s month-over-month increase of 0.6% is below the pre-pandemic norm, the uptick in the annual appreciation rate suggests that while affordability issues are keeping demand weak, low inventory levels are creating a floor for prices on the supply side. However, the market's trajectory is not uniform; we're seeing clear divergences between resilient metros and those still experiencing price corrections.”
Home price highlights:
- Annual appreciation sees an uptick: For the first time in 2026, the annual rate of home price appreciation was above 1%, rising to 1.1% nationally. The 10-City and 20-City composites also outpaced the national trend, with annual gains of 2.4% and 1.6%, respectively.
- Monthly growth remains below seasonal averages: Nationally, home prices grew by 0.6% on a month-over-month basis. While positive, this is still below the historical average of 1.0% for the month of May, indicating that current appreciation is not as strong as in the pre-pandemic years of 2015-2019.
- Annual growth accelerates in a majority of metros: Thirteen of the 20 major metro areas saw their rates of annual price growth accelerate compared to April. Chicago once again posted the highest year-over-year gain at 6.9%, while Las Vegas recorded the weakest performance with a 1.9% decline.
- Monthly changes show regional divides: While most cities saw monthly price gains, they were generally below their historical May averages. Boston posted the strongest month-over-month increase at 1.8%, significantly outperforming its historical trend. In contrast, San Diego saw a sharp 1.0% monthly drop, indicating continued weakness in the South and West.
- High-tier properties lead monthly gains: An analysis of price tiers shows that the high-end of the market led monthly appreciation with an average gain of 1.0%. The medium-tier and low-tier segments followed with more modest gains of 0.6% and 0.5%, respectively.
Big cities show mixed results in annual home price growth
Data source: S&P Cotality Case-Shiller Indices, not seasonally adjusted (May 26, 2026)
Midwestern metros see resilience in monthly price gains
Data source: S&P Cotality Case-Shiller Indices, not seasonally adjusted (May 26, 2026)
Signs point to a resilient market regaining its footing after a prolonged period of cooling. While the market has not returned to the frenetic pace of previous years, low inventory is preventing a more significant price correction in the face of low demand. The outlook is one of cautious optimism, with the market shifting toward a more sustainable, albeit regionally diverse, pattern of growth.
High-end homes show resilient month-over-month appreciation
Data source: S&P Cotality Case-Shiller Indices, not seasonally adjusted (May 26, 2026)
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