--- title: Home Prices Are Falling at the Fastest Pace Since the Great Recession description: 'Median home prices fell significantly in July and August: The two-month drop is the biggest since the Great Recession in 2008.' authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2022-10-04T18:12:37.000Z' modified: '2024-01-10T13:18:38.000Z' section: Housing tags: - News word_count: 345 canonical: https://money.com/home-prices-falling-fastest-pace-2008/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Downward Facing Arrows With Dollar Signs Behind A Small House](https://img.money.com/2022/10/News-Home-Prices-Dropped-Most-Since-2009.jpg) The red-hot housing market appears to officially be a thing of the past. A new [report](https://www.blackknightinc.com/wp-content/uploads/2022/09/BKI_MM_Aug2022_Report.pdf) from mortgage technology and data provider Black Knight shows that median home prices fell 1.05% in July and 0.98% in August. That’s “two straight months of significant pullbacks after more than two years of record-breaking growth,” Black Knight Data & Analytics president Ben Graboske said in a [news release](https://investor.blackknightinc.com/press-releases/news-details/2022/Black-Knight-Home-Prices-Down-Again-in-August-With-Average-Home-Nationally-Now-2-Off-June-Peak-Inventory-Growth-Stalls-as-Sellers-Step-Back/default.aspx). The housing market hasn’t seen a two-month drop in prices this large since the 2008 financial crisis, the report says. Some housing markets are seeing prices fall even faster, Black Knight’s report shows. San Jose, San Francisco and Seattle have seen the biggest declines from the market’s peak earlier this year, with drops of 13%, 10.8% and 9.9%, respectively. But don’t forget: home prices are still significantly higher than they were at this time last year — even with this summer’s price drops. Data from real estate brokerage Redfin shows that median home prices were up nearly 7% in August compared to a year earlier. ## Why are home prices falling? Much of the slowdown in the housing market can be attributed to a rapid rise in [mortgage rates](https://money.com/current-mortgage-rates/), which recently hit 6.7% for a 30-year fixed-rate loan. That’s more than double the average rate on the same loan at the beginning of this year. The result of that spike has been a huge decline in affordability for buyers. Home price growth has slowed significantly as many buyers dropped out of the market and sellers were forced to [cut prices](https://money.com/homes-for-sale-price-cuts/) to remain competitive — that is, if they still want to sell at all. “Right now, prospective sellers are not only coming to grips with falling demand and declining prices due to sharply higher interest rates,” Graboske added, “but they also have a growing disincentive to give up their own historically low-rate mortgages in this environment.” ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-prices-falling-fastest-pace-2008/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "Home Prices Are Falling at the Fastest Pace Since the Great Recession" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/home-prices-falling-fastest-pace-2008/#webpage", "url": "https://money.com/home-prices-falling-fastest-pace-2008/", "name": "Home Prices Are Falling at the Fastest Pace Since the Great Recession", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-10-04T18:12:37.000Z", "mainEntity": { "@id": "https://money.com/home-prices-falling-fastest-pace-2008/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-prices-falling-fastest-pace-2008/#breadcrumb" }, "dateModified": "2024-01-10T13:18:38.000Z" }, { "@type": "NewsArticle", "headline": "Home Prices Are Falling at the Fastest Pace Since the Great Recession", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/10/News-Home-Prices-Dropped-Most-Since-2009.jpg", "width": 2880, "height": 1920, "caption": "News-Home-Prices-Dropped-Most-Since-2009" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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