U.S. home prices have gone negative on a year-over-year basis for the first time since mid-2023, dropping less than 1% nationally.
Prices are down 1.4% over the past three months according to Parcl Labs, which tracks both new and existing single-family homes, condos, and townhomes.
Driving the news: The recent decline follows a “rapid run-up” in prices during the Covid years (2020–2022), fueled by low interest rates and high demand.
- Mortgage rates surged from 3.9% in March 2022 to over 7% by June 2023, leading to an affordability shock that priced out buyers and cooled the housing market.
The big picture: Inventory levels remain low by historical standards, but active listings in November were 13% higher than the previous year, while new listings were up just 1.7%.
- Some sellers are withdrawing homes from the market at a high rate, contributing to tight supply.
Zoom in: Regional differences are pronounced: Austin, Texas, saw prices fall 10%; Denver dropped 5%; Tampa and Houston fell 4%; Atlanta and Phoenix dropped 3%.
- Meanwhile, price gains were seen in Cleveland (+6%), Chicago and New York City (+5%), Philadelphia (+3%), and Pittsburgh and Boston (+2%).
