Home price growth lags behind inflation in August, prices dip 0.2% MoM

The S&P Cotality Case-Shiller Index reported a 2.1% year-over-year increase in home prices for August 2026, up slightly from 1.9% in July, reaching an index reading of 336.74, according to HousingWire.

Inflation outpaced home price appreciation at 3.4% in August, about 1.3 percentage points higher than the 2.1% home price gain, indicating that real home price growth is lagging behind inflation.

On a monthly basis, home prices declined by 0.2% nationwide in August, following a modest 0.1% increase in July. This drop is below the pre-pandemic August average gain of 0.3%, signaling persistent short-term weakness in the housing market.

Seasonal factors contributed to the monthly results, with non-seasonally adjusted indices falling 0.2% nationally and 0.4% in the 10-City Composite, while seasonally adjusted indices showed slight rises, suggesting some underlying strength.

HousingWire's more current data for the week ending October 23, 2026, shows softer home price appreciation, with the median list price at $430,000, down 2.1% from both a year ago and the previous month.

Economist Thomas Malone noted that home prices have been mostly flat since 2022 when adjusted for inflation, with low sales turnover partly due to homeowners' reluctance to move amid record equity and low mortgage rates.