Home prices in August saw their biggest monthly drop in more than a decade, though theyre still higher than they were a year ago, according to the S&P CoreLogic Case-Shiller Home Price Index.
Home prices in August were up 13% nationally from the year before, down from 15.6% annual growth in July and 18.1% in June.
The deceleration from July to August is the largest in the history of the index, which dates back to 1987, said Craig J. Lazzara, Managing Director at S&P DJI.
Rapidly rising interest rates slowed the housing market this year, with existing home sales falling for eight months straight through September, according to the National Association of Realtors.
With higher interest rates, “mortgage financing becomes more expensive and housing becomes less affordable,” Lazzara said. “Home prices may well continue to decelerate.”
