(Bloomberg) — U.S. home prices have turned around and are now posting their biggest monthly declines since 2009.
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Median home prices fell 0.98% in August from the previous month, following a 1.05% drop in July, Black Knight Inc. said Monday. in a report. Both periods mark the biggest monthly declines since January 2009.
“Together these represent two months in a row of significant pullbacks after more than two years of record growth,” said Ben Graboske, president of Black Knight Data and Analytics.
The housing market is losing steam quickly with rising mortgage rates driving affordability to the lowest level since the 1980s. The Federal Reserve has been trying to curb inflation, which has thrown cold water on the boom American real estate.
Although prices are falling month-on-month, they are still significantly higher than a year ago, when the buying frenzy was going strong. Values were up 12.1% year-over-year in August.
The sharpest correction in August was in San Jose, Calif., down 13 percent from its 2022 peak, followed by San Francisco with nearly 11 percent and Seattle with 9.9 percent, the company said.
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