Nationally, home prices rose for 124 consecutive months between February 2012 and June 2022. Now we're in reverse: Through September, the seasonally adjusted Case-Shiller National Home Price Index has posted three consecutive monthly declines. In total, this 2.2% decline in the lagged resale index ties the second biggest home price correction of the post-World War II era, although it remains far below the 26% correction between 2007 and 2012.
While it's pretty clear that pressurized housing affordability has triggered some deflation in the U.S. housing market, industry insiders remain divided on what the ongoing home price correction will look like in 2023. The reason? Demand and supply are sending mixed signals.
