What’s Really Going on with Home Prices? Here’s What You Need to Know
If you’ve been wondering about the state of home prices lately, you’re not alone. With so much conflicting information, it’s hard to know how to plan your next steps.
As a buyer, you might be worried about overpaying, while sellers may be concerned about not getting their desired price. To help you make sense of it all, here’s a straightforward look at what’s happening with home prices right now—whether you’re looking to buy or sell.
Home Price Growth Is Slowing—But Prices Aren’t Dropping Nationwide
While home price appreciation is slowing across the country, it’s important to note that prices are still increasing, just not at the rapid pace we’ve seen in recent years. To give you a clearer picture, take a look at the Case-Shiller data below, which highlights the shift from 2023 to 2024.
Home Prices Are Still Growing—But at a Slower Pace
Don’t worry—home prices aren’t falling. As shown in the graph, every bar reflects price growth. When you hear talk about prices “cooling,” it simply means they’re not increasing as rapidly as they did during the housing surge a few years ago.
What’s Next for Home Prices? It’s All About Supply and Demand
Curious about what the future holds for home prices? The answer lies in supply and demand—and it will vary depending on your local market.
On a national level, the number of homes for sale is rising, but it’s still not enough to meet today’s strong buyer demand. This imbalance continues to push prices upward, even though the increased inventory has led to slower price appreciation. As Danielle Hale, Chief Economist at Realtor.com, explains:
“. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.”
Another factor to consider is mortgage rates. Experts predict that rates will continue to decrease, potentially drawing more buyers back into the market. If demand picks up again, we could see prices rise further.
Why You Should Work with a Local Real Estate Agent
While national trends provide a broad overview, real estate is highly local—especially when it comes to pricing. Your neighborhood’s market conditions may differ significantly from national averages, based on local supply and demand. That’s why partnering with an experienced local real estate agent is essential.
A local agent will provide you with the most up-to-date data and insights specific to your area. If you’re selling, they can help you set a competitive price, and if you’re buying, they’ll find a home that meets your needs and budget.
Bottom Line
Home prices are still rising, just at a slower pace than before. Whether you’re thinking of buying, selling, or simply curious about your home’s value, let’s connect so you can receive expert, personalized advice.