Home Prices: Falling? Yes. Crashing? Not Yet

Off the Charts: The Visual Says It All

Woman wearing a baby in a baby carrier, shoveling snow outside a house
Photo:

Christopher Kimmel / Aurora Photos / Getty Images

Home prices fell for a fifth month in November, but if you’ve been waiting for them to crash—keep waiting. 

That’s according to data from CoreLogic’s Home Price Index released Tuesday, which showed nationwide prices fell 0.2% in November, the fifth month of declines since prices peaked in June last year. Higher mortgage rates in recent months have hurt buyers’ budgets to the point where they’re pulling back and cooling down the market. 

But whether you’re eager for prices to plummet or dreading the prospect, the trend so far has yet to make a major dent in the massive price hikes seen during the pandemic, as a chart of monthly price changes shows.

Indeed, prices have fallen just 2.5% from the peak they reached in June and are still 37% above pre-pandemic levels, by CoreLogic’s measure. Economists at CoreLogic expect prices to decline just 2.8% over the next year, well short of the 20% implosion that some experts have forecast. Mortgage rates, while elevated, have receded from their recent peaks, helping buyer’s bottom lines a bit, and the job market has stayed healthy despite recent recession fears, and that’s all contributed to an improved housing outlook.

“With slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023,” Selma Hepp, deputy chief economist for CoreLogic, said in a commentary.


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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. CoreLogic. “U.S. Home Price Insights – January 2023.”

  2. KPMG. “Bursting the Pandemic Bubble: Rate Hikes and the Consumer.”

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