On a monthly basis, the New Housing Price Index (NHPI) fell 0.4% in October, the largest monthly decline since April 2009. However, the picture was mixed across the country, as prices were down in 9 out of 27 census metropolitan areas (CMAs) surveyed, but unchanged in 11 CMAs and up in the remaining 7.
So many factors.
Sellers may have sat on the sidelines when rates went up and sales went down. As inventory climbs, pressure grows and prices come down. Declining prices can scare sellers who come off the sidelines before prices come down further. Rates and prices coming down brings back buyers which drives up prices. Which forces dominate in any given month? For how long? No easy answers in advance.