Home prices in the U.S. fell in May by a seasonally adjusted 0.3% month over month, according to the S&P CoreLogic Case-Shiller price index.

The May price decline is the latest sign that home price growth is decelerating or even falling in some locations. The Case-Shiller National Home Price NSA Index, which covers all nine U.S. census divisions, reported that for the past 12 months, home prices showed an annual gain of 2.3% in May, down from a 2.7% annual gain in April.

Home prices in the 20 largest U.S. metro markets were up 2.8% over the past 12 months, down from a 3.4% increase in the previous month. New York City reported the highest annual gain among the 20 largest cities, with a 7.4% jump in May. Chicago was second with an increase of 6.1% and Detroit was third with price growth of 4.9%. Tampa, Fla., posted the lowest annual return among the largest cities, with prices falling 2.4%.

“May’s data continued the year’s slow unwind of price momentum, with annual gains narrowing for a fourth consecutive month,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, in a press release. “National home prices were just 2.3% higher than a year ago, the smallest increase since July 2023, and nearly all of that gain occurred in the most recent six months. The spring market lifted prices modestly, but not enough to suggest sustained acceleration.”

Godec said monthly trends “signaled broad-based fatigue,” with Case-Shiller’s national, 10-city and 20-city indexes declining by 0.3% on a seasonally adjusted basis in May. It was the third consecutive month of seasonally adjusted declines for the national composite index. Of the 20 largest cities, only Tampa, Cleveland, Minneapolis and Charlotte, N.C., showed month-over-month price acceleration, pointing to waning price momentum even as most cities still registered nominal gains.

“Seasonal momentum is proving weaker than usual, and the slowdown is now more than just a story of higher mortgage rates,” Godec said. “It reflects a market recalibrating around tighter financial conditions, subdued transaction volumes and increasingly local dynamics. With affordability still stretched and inventory constrained, national home prices are holding steady, but barely.”