U.S. real home prices, adjusted for inflation, have continued a downward trend for nearly a year.

S&P Dow Jones Indices announced on June 30 (local time) that the S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 0.8% in April compared to the same period last year.

Compared to the 3.8% increase in the U.S. Consumer Price Index for April, the growth rate of home prices was 3 percentage points lower than the inflation rate.

"U.S. home prices have fallen for 11 consecutive months on an inflation-adjusted basis," said Nicholas Godec, head of commodities and real assets at S&P Global. "This means that household wealth has continued to be eroded when accounting for inflation."

The sharp rise in U.S. home prices following the pandemic and the sustained high level of mortgage rates have kept potential homebuyers on the sidelines, contributing to the slowdown in home price growth since last year.

According to Freddie Mac, a U.S. government-sponsored mortgage lender, the average rate for a 30-year fixed-rate mortgage fell below 6% at the end of February but has climbed back into the 6% range since March in the aftermath of the outbreak of the U.S.-Iran war.

Changes in home prices in major metropolitan areas varied significantly by region.

While prices rose by 6.5% in Chicago and 3.8% in New York, they declined in Seattle (-2.3%), Denver (-1.8%), Dallas (-1.6%), and Phoenix (-1.7%).