For the first time in more than two years, U.S. home prices have dipped into negative territory, slipping 1.4% in just the last three months. High-frequency data from Parcl Labs shows a modest decline nationally, but the shift carries more weight than the numbers suggest. After a long stretch of rising prices fueled by pandemic demand, extremely low inventory, and a surge in relocation activity, the market is now feeling the effects of high mortgage rates, slower buyer activity, and a consumer who is becoming increasingly cautious. For small-cap investors, this change in the housing landscape serves as a valuable indicator of broader economic sentiment.