Home prices grew modestly in May, while inflation continued to surge, according to two home price indicators. Similarly, the S&P Cotality Case-Shiller home price index posted a 1.1% annual gain and a 0.9% monthly increase from April. The West Coast is cooling while Eastern and Southern regions continue to drive national price gains. Real home prices see annual declineWhile nominal prices are up slightly, home values have fallen in real terms for the 12th consecutive month. Inflation peaked at 4.2% in May, running roughly 3 percentage points higher than the 1.1% nominal home price gain.