News Home Prices Have Never Fallen This Fast Off the Charts: The Visual Says It All By Diccon Hyatt Diccon Hyatt Diccon Hyatt has written hundreds of articles about how public policy and the economy intersect with personal finance, tracking all the latest dynamics affecting your money. Before joining The Balance, he covered business and community news for 17 years, including Princeton, New Jersey's high-tech Route 1 Corridor. learn about our editorial policies Published on October 25, 2022 Share Tweet Pin Email Photo: Steve Prezant / Getty Images Home prices have gone from soaring to plunging with remarkable speed, a chart of the S&P CoreLogic Case-Shiller Home Price Index shows. In August, home prices fell for a second month in a row, the first time that’s happened since 2012, according to data from S&P Dow Jones Indices released Tuesday. July had been the first month in a decade that prices fell. As the chart below shows, the surging prices seen in the spring quickly started to unravel. On a year-over-year basis, prices were up 13% in August, down from 15.6% in July—the sharpest deceleration in the history of the index, which goes back to 1987. The Federal Reserve’s series of interest rate hikes to fight inflation have made mortgage rates surge to two-decade highs this year, making monthly mortgage payments for newly-bought homes balloon, and driving buyers out of the market. Many economists expect prices to continue to decline, although no one is sure just how far they will drop. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit 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. S&P Down Jones Indices. "S&P CoreLogic Case-Shiller Index Continued To Decelerate in August," Pages 1-2.