On Tuesday, we learned that U.S. home prices as measured by the seasonally adjusted Case-Shiller National Home Price Index fell for the sixth straight month in December. Since peaking in June, U.S. home prices have fallen 2.7% on a seasonally adjusted basis, and 4.4% without seasonal adjustment.
On one hand, that 2.7% drop in single-family house prices marks the second-biggest home price correction of the post–World War II era. On the other hand, through December, the Pandemic Housing Correction is a mild correction compared to the 26% peak-to-trough drop notched between 2007 and 2012.
