U.S. housing prices fall for 1st time since 2012, but monthly sales rise after 12-month slide


The median price for U.S. existing homes fell 0.2 percent in February from a year earlier, to $363,000, the National Association of Realtors said Tuesday, marking the first year-over-year decline in home prices since February 2021. February's prices were down 12.3 percent from a record high in June, but that doesn't necessarily mean a break for prospective homebuyers because mortgage rates have risen at the same time in tandem with the Federal Reserve's inflation-fighting interest rate hikes.
"Many economists expect home prices to keep falling this spring," The Wall Street Journal reports. "But home-buying affordability is likely to remain worse than it was a year ago, because prices would have to drop significantly to fully offset the increase in mortgage rates. The inventory of homes for sale remains below normal levels, which could prevent steep price declines."
The slight decrease in interest rates and home prices did help reverse a 12-month slide in existing home sales, which make up the majority of the housing market, the National Association of Realtors said. Sales of previously owned homes rose 14.5 percent in February from January, though they were down 22.6 percent from February 2022. The February sales data reflects what buyers and sellers were doing in December and January, well before the recent pair of bank failures rattled financial markets and, possibly, consumer sentiment.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The slump in home sales and prices is not just a U.S. phenomenon — property prices have also dropped in Britain, Germany, the Netherlands, Canada, and Australia, The New York Times reports — "but few places have been hit as hard as Sweden, which features an incendiary mix of high levels of household debt and the widespread use of variable or short-term fixed rates on home mortgages loans." Housing prices shot up in Sweden during the COVID-19 pandemic, as they did in the U.S. and elsewhere, the Times says, but Swedish house prices have fallen 15 percent from their peak last March through the end of the year "and have mostly plateaued since then."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Scientists want to fight malaria by poisoning mosquitoes with human blood
Under the radar Drugging the bugs
By Devika Rao, The Week US Published
-
Crossword: March 31, 2025
The Week's daily crossword
By The Week Staff Published
-
Sudoku medium: March 31, 2025
The Week's daily medium sudoku puzzle
By The Week Staff Published
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US Published
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US Published
-
Why is the threat of stagflation rising?
Talking Points Inflation is sticky. Trump's tariffs won't help.
By Joel Mathis, The Week US Published
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US Published
-
Pros and cons of tariffs
Pros and Cons As Trump imposes tariffs on cars from overseas, here are the arguments for and against duties
By The Week UK Last updated
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US Published
-
Foreigners in Spain facing a 100% tax on homes as the country battles a housing crisis
Under the Radar The goal is to provide 'more housing, better regulation and greater aid,' said Spain's prime minister
By Justin Klawans, The Week US Published
-
Is inflation about to surge again?
Talking Points The Federal Reserve is cautious about Trump's policies
By Joel Mathis, The Week US Published