The United States is still witnessing a rapid decline in new home prices, plummeting by a staggering 20% from their peak in 2022. Recent data reveals a significant shift in the housing market dynamics, with the median sale price of a new house nosediving from a robust $497,000 in mid-2022 to just over $400,000 today.

This downturn far surpasses the rate of decline experienced during the 2008 financial crisis, raising concerns across the industry and among homeowners alike. Notably, banks are grappling with the repercussions as collateral repricing wreaks havoc on their balance sheets.