Home Prices Fell for First Time Since 2012

Off the Charts: The Visual Says It All

Young family in their new home
Photo:

DigitalVision / Getty Images

Something happened in the housing market in July that hasn’t been seen since 2012: home prices fell nationwide. 

That’s according to the S&P Case-Shiller National Home Price Index, which showed a 0.2% decrease in single-family home prices in July after seasonal adjustment. While home prices were still up 15.8% over the year, it was a steep deceleration from the 18.1% seen in June. The chart below shows just how quickly the housing market is slamming on the brakes.

The culprit for this summer’s slump in the housing market is the skyrocketing rate for a 30-year mortgage, which shot up past 6% since the Federal Reserve began its campaign to raise interest rates to fight inflation. That’s made it much harder to buy and sell a home. Fed chair Jerome Powell said the housing market, which had seen prices soar amid the pandemic, was in for a “difficult correction,” and if S&P’s data is any indication, it may have already begun.

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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. S&P Dow Jones Indices. "S&P CoreLogic Case-Shiller Index Continued its Deceleration in July," Page 3.

  2. S&P Dow Jones Indices. "S&P CoreLogic Case-Shiller Index Continued its Deceleration in July," Page 1.

  3. Freddie Mac. “The 30-year Fixed-Rate Mortgage Increased by a Quarter of a Percent this Week.”

  4. Board of Governors of the Federal Reserve System. “Transcript of Chair Powell’s Press Conference September 21, 2022,” Page 20.

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