Some homeowners who managed to buy last year are bleeding money—the worst hit have lost more than $122,000 in home value with price corrections “pummeling” dozens of cities

New homeowners are getting hit already with negative equity. (Credit: Getty Images)

U.S. housing prices started their steady rise during the pandemic and have only come down in a handful of cities this year. Indeed, the seemingly unstoppable upward march of home prices has kept out many would-be homebuyers, who find themselves unable to save for a down payment, let alone handle 7% or higher mortgage rates. 

But it’s not just the locked-out renters who are suffering in today’s housing market. Many homeowners who managed to break into the market last year as prices ballooned are now facing a new obstacle: homes that are already losing value even as mortgage rates surge higher, according to a late November report from real-estate search portal Point2.