U.S. home prices rose 2.1% year over year in August 2026, according to the latest S&P Cotality Case-Shiller Index, but major cities moved in sharply different directions. Chicago gained 6.7% while Seattle fell 2.0%. The findings show homeowners, buyers and real estate professionals how widely housing conditions differed across markets.
Key Takeaways
- The national Case-Shiller index increased 2.1% annually in August, up from 1.9% in July.
- Chicago led with a 6.7% annual increase, while Seattle had the largest decline at 2.0%.
- Unadjusted national prices slipped 0.2% in August, despite a 0.3% seasonally adjusted gain.
- A separate federal index measured 2.4% annual home price growth for the same month.
- Freddie Mac reported an average 7.32% 30-year mortgage rate on October 22.
The 8.7-percentage-point gap between Chicago and Seattle was among the clearest findings in the report released October 27. It placed the relatively modest national increase alongside very different outcomes in individual metropolitan areas.
The data cover home transactions through August rather than October closings. Case-Shiller uses repeat sales of single-family properties and three-month rolling periods, making it different from a median sales price or a measure of current listing prices.
U.S. Home Prices Show an 8.7-Point Gap Between Major Cities
Chicago recorded the strongest annual gain among the cities reported in August for a sixth consecutive month, according to S&P Dow Jones Indices. New York followed with a 6.2% increase, while Cleveland rose 4.3%. Miami gained 4.2%, and San Francisco increased 3.4%.
At the opposite end, Seattle fell 2.0% from August 2025, marking its third consecutive month with the weakest annual result. Las Vegas declined 1.3%, while Denver and Dallas each fell approximately 0.8%. Tampa registered a smaller 0.4% annual decrease.
The monthly figures exposed further differences. Only Miami and Chicago posted unadjusted increases in August, rising approximately 0.2% and 0.1%, respectively. Seattle fell 1.1% during the month, while Los Angeles and Dallas each declined about 0.8%.
New York also illustrates the difference between annual and monthly readings. Its index rose 6.2% from a year earlier but declined approximately 0.2% from July.
A separate August home price index report based on First American Data & Analytics found 1.4% annual national growth and a 5.5% gain in Chicago. The results differ from Case-Shiller because the providers use different datasets and calculation methods. Neither set of national figures describes every neighborhood or property type.
Detroit did not receive a valid August Case-Shiller update because delayed recording information from Wayne County affected the available transactions. S&P reported a valid July figure instead and said it would update the missing observations as data became available.
Annual Home Price Growth Contrasts With a Monthly Decline
The national Case-Shiller index’s annual rise accelerated from 1.9% in July to 2.1% in August. The 10-City Composite increased 3.6% from a year earlier, while the 20-City Composite gained 2.7%. Both readings were stronger than their respective July annual increases of 3.4% and 2.5%.
The shorter-term picture was more mixed. Before seasonal adjustment, the national index slipped 0.2% from July, and both city composites fell 0.4%. After seasonal adjustment, the national index rose 0.3%, the 10-City Composite gained 0.4%, and the 20-City Composite increased 0.3%.
These measures answer different questions. Annual changes compare August with the same month in 2025, while monthly changes describe movement from July. Seasonal adjustments account for recurring patterns in housing transactions, including changes associated with the summer sales period.
The annual increase also trailed inflation. Consumer prices rose 3.4% over the 12 months through August, compared with 2.1% growth in the national home price index.
“U.S. home prices declined in real terms for the 15th consecutive month in August 2026,” said Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices.
Cotality’s breakdown of 16 metropolitan markets showed unadjusted monthly declines across price tiers. Lower-priced homes fell 0.2%, middle-priced homes 0.3%, and higher-priced properties 0.4%. Those figures apply to the analyzed markets rather than every home sold nationwide.
The Federal Housing Finance Agency offered another comparison in its October 27 release. Its seasonally adjusted House Price Index rose 0.3% from July and 2.4% annually in August. The East North Central census division led annual growth at 4.4%, while the Mountain division posted the smallest increase at 0.5%.
More Listings and Mortgage Costs Add Context to Housing Trends
Price indices do not directly measure the number of homes available, the speed of sales, or the cost of financing. More recent releases help describe those conditions without changing what the August Case-Shiller figures measure.
The National Association of Realtors reported that September existing-home sales reached a seasonally adjusted annual rate of 3.99 million, up 1.5% from August but down 2.2% from a year earlier. Unsold inventory reached 1.60 million homes, equivalent to 4.8 months of supply. The median completed-sale price was $417,500, up 1.3% annually.
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Separate housing inventory and price cuts data showed 1,161,615 active listings nationally in September, up 5.4% year over year, according to Realtor.com. Price reductions appeared on 20.8% of active listings. The National Association of Realtors’ inventory count and the Realtor.com listing total use different methodologies and should not be directly compared.
Mortgage costs also remained elevated. Freddie Mac reported that the average 30-year fixed mortgage rate was 7.32% on October 22, down from 7.40% a week earlier but above the 6.19% average recorded a year before. That October rate is a later market reading, not a factor measured directly by the August price index.
U.S. home prices in the Case-Shiller report reflect repeat-sale movements across markets, not the valuation of any individual property. Even where metropolitan prices rose sharply, the index cannot substitute for local comparable sales, property condition or specific financing terms.
Frequently Asked Questions
Why did U.S. home prices rise annually but fall in August?
U.S. home prices rose 2.1% compared with August 2025 but declined 0.2% from July before seasonal adjustment. The figures cover different comparison periods, and the seasonally adjusted national reading increased 0.3% for the month.
Which cities had the strongest and weakest price changes?
Chicago recorded the largest annual increase at 6.7%, followed by New York at 6.2% and Cleveland at 4.3%. Seattle recorded the biggest decline at 2.0%, followed by Las Vegas at 1.3%.
Why does the FHFA index differ from Case-Shiller?
The FHFA index reported a 2.4% annual increase in August, compared with 2.1% in Case-Shiller. The measures use different transaction sources and methodologies, so their results are not identical.
What was the average mortgage rate when the report was released?
Freddie Mac’s most recently published weekly reading before October 27 showed an average 7.32% rate for a 30-year fixed mortgage as of October 22. Actual loan offers depend on borrower and loan characteristics.
