The latest S&P/Case-Shiller Home Price Index (HPI) Composite for the 20 largest cities in the United States showed a slight decline in its year-over-year growth rate, according to data updated on December 30, 2025. In a sign of cooling in the housing market, the index recorded a year-over-year increase of 1.3% in October, down from 1.4% in September.
The report indicates that even though home prices continue to rise compared to the same period the year before, the pace of that increase is decelerating. This marks the second month in a row that the growth rate has been easing, signaling possible shifts in market dynamics as the sector stabilizes following the frenetic activity of recent years.
Analysts point to various factors contributing to this change, including higher borrowing costs, potential shifts in housing demand, and changing economic conditions affecting buyer affordability. As the index provides a critical reflection of the housing market health, stakeholders will be closely monitoring these trends as they develop heading into the new year.