Home Prices Have Never Fallen This Fast

Off the Charts: The Visual Says It All

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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.

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  1. S&P Down Jones Indices. "S&P CoreLogic Case-Shiller Index Continued To Decelerate in August," Pages 1-2.

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