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

See Full Page