US house prices have registered their biggest monthly decline since 2009.

Cities facing the sharpest correction include San Francisco.

What happened? US house prices have reversed and are now showing their biggest monthly decline since 2009.

Details. Median house prices fell by 0.98% in August compared with the previous month after falling by 1.05% in July, according to a report released by mortgage data provider Black Knight Inc. These two periods mark the biggest monthly decline since January 2009.
Quote. “Together, they represent two consecutive months of significant pullbacks after more than two years of record growth,” said Ben Graboske, president of Black Knight Data and Analytics.

The reasons. The housing market is rapidly losing ground: skyrocketing mortgage rates are pushing affordability to its lowest level since the 1980s. The Federal Reserve System sought to curb inflation, which dampened the boom in the US real estate market.

It is important. Although prices are falling on a monthly basis, they are still significantly higher than a year earlier. Values ​​rose by 12.1% compared with a year earlier in August.

Cities. The sharpest correction in August was in San Jose, California, by 13% lower than its 2022 peak, followed by San Francisco (nearly 11%) and Seattle (9.9%), the company said.

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