• The seasonally adjusted S&P CoreLogic Case-Shiller U.S. National Home Price Index® decreased 0.3% in March.
• Nationally, prices rose 3.4% year-over-year in March, down from 4% in February.
• Annual price growth slowed in March in both the 10-city index and the 20-city index.

What happened: The seasonally adjusted national S&P CoreLogic Case-Shiller Index (C-S) decelerated in March. Released one month earlier, Zillow’s Home Value Index (ZHVI) seasonally adjusted appreciation adjusted to the slowest pace for any March since 2018. Zillow now forecasts ZHVI to fall 1.4% in 2025.

Why it matters: Zillow data released last month showed that in March new listings were up roughly 9% from the previous year. At the same time, sales lagged. The imbalance led to a 19% increase in total for-sale inventory compared to the same month last year. As a result, the share of listings with a price cut shot up to the highest March rate in six years.

The next month’s data tells a similar story. Although housing affordability remains a constraint for many, 25% of homes on Zillow received a price cut in April. Home buyers also now have more homes to choose from. There are 1.2 million homes for sale in April — the most since August 2020. 

A price correction is expected to result in a modest recovery in sales over the coming year, with Zillow forecasting sales to continue bouncing along the bottom.