U.S. home price growth showed signs of acceleration in May, though regional disparities persisted across the country, according to the latest data from the S&P CoreLogic Case-Shiller National Home Price Index. The index rose 1.1% over the 12 months ending in May, marking a modest increase in nominal terms.

Despite this gain, home values declined in real terms for the 12th consecutive month, as inflation outpaced price growth. The Consumer Price Index recorded a 4.2% increase in May, nearly three percentage points higher than the rise in home prices. This suggests that when adjusted for inflation, the purchasing power of home values continues to erode. “May’s data suggests that U.S. home prices continue to decline in real terms,” noted Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices.

Regionally, the trends varied significantly. Metropolitan areas in the Northeast and Midwest led the price gains, with several outperforming the national average. Chicago recorded the strongest year-over-year growth among major cities, posting a 6.9% increase in May. New York and Cleveland also reported notable annual gains, contributing to a stronger price performance in these regions.

In contrast, several markets in the West and Sunbelt faced downward pressure. Las Vegas experienced the largest year-over-year decline, with prices falling 1.9%. Other cities including Seattle, Denver, and Tampa saw home values decrease during the same period. These mixed results reflect divergent local economic conditions and housing demand factors across the country.

Overall, the data highlights the uneven recovery and persistent inflationary challenges in the U.S. housing market, with gains concentrated in some metropolitan areas while others struggle to maintain prices in the face of broader economic pressures.