Inflation outpaced national home price growth for the ninth consecutive month in February, eroding real home values as headline readings show persistent but increasingly paltry gains.

The S&P Cotality Case-Shiller U.S. National Home Price Index posted a 0.7% non-seasonally adjusted yearly gain in February, down from 0.8% growth in January and 1.1% growth in December.

The consumer price index (CPI) saw 2.4% annual growth in February, according to the Bureau of Labor Statistics. Compounding energy and trade shocks from the Iran war and ongoing tariff-related price hikes pushed headline CPI to 3.3% in March.

With even higher inflation readings expected in months to come as broader economic impacts of the war emerge, inflation will likely continue to outpace home price appreciation, which is forecast to remain subdued.

The 10-city composite index, which feeds into the national index, recorded annual growth of 1.5%, slower than the 1.7% yearly increase in January. The 20-city composite index increased 0.9% annually, down from 1.2% over the 12 months ending in January.

On a seasonally adjusted monthly basis, the national index posted 0.1% growth from January, as did the 10-city index, while the 20-city index fell by 0.05%. On an unadjusted basis, the national index rose 0.3%, the 10-city rose 0.6% and the 20-city rose 0.4%.

“Mortgage rates near 6% continue to weigh on affordability and transaction activity, holding nominal price growth below inflation,” said Nicholas Godec, head of fixed income tradables and commodities at the ratings agency S&P Dow Jones Indices, commenting on the updated indexes in accompanying analysis.

With more than half of major U.S. metro markets posting annual price declines in February, Godec noted that the “geographic mix” of weakening markets has “shifted meaningfully,” the continuation of a trend that began in the second half of 2025.

“The H1/H2 split reinforces the picture: a 1.5% gain over the first six months of the trailing 12 gave way to a 0.8% decline over the most recent six,” he explained, building on observations he made last month. “Monthly data offered a modest seasonal lift without underlying momentum.”

A similar lack of momentum was registered in February home price data released Tuesday by the Federal Housing Finance Agency (FHFA). House prices nationally were unchanged from January to February, the Fannie Mae and Freddie Mac regulator reported, and were only 1.7% higher on a seasonally adjusted basis compared to one year ago.

Of note from the FHFA’s tracking, the Pacific and Mountain census divisions in the western U.S. both recorded notable monthly and annual price declines in February. Those findings affirm the spread of weakening home price performance noted by Godec in the updated Case-Shiller index.

A nearly 2.2% annual home price decline in Denver, for example, was enough to replace Tampa, Fla., as the weakest housing market on the 20-city index in February. Seattle posted 2% annual price declines, while Los Angeles joined the list of major metros posting price drops, sliding 1.8% lower over the year.

Across other major western markets on the 20-city index, Phoenix home prices declined 1.8% in February, Portland prices were down almost 0.9%, Las Vegas recorded a 1% annual drop and San Francisco experienced a 0.3% decline.

Chicago, New York and Cleveland continued to lead national home price gains, rising 5%, 4.7% and 4.2% over the year in February.