Uncovering the Truth About Today’s Home Prices

If you’ve been wondering about the recent trends in home prices, you’re not alone. With so much information circulating, it’s tough to determine your next steps.

As a buyer, you might be concerned about overpaying. And if you’re considering selling, you might worry about not getting your desired price. Here’s a brief overview to help clarify the situation and explain what’s really happening with home prices—whether you’re planning to buy or sell.

Home Price Growth Is Slowing, but Prices Aren’t Dropping Nationwide

Across the country, home price appreciation is cooling down. In other words, prices are still rising, but not as quickly as they have in recent years. The graph below, based on data from Case-Shiller, illustrates this shift from 2023 to 2024:

But don’t worry, this doesn’t mean home prices are dropping. In fact, as you can see from the graph, all the bars still reflect price growth. So while you may hear talk about the market cooling off, what’s really happening is that prices aren’t climbing as rapidly as they did during the housing boom of the past few years.

What’s Next for Home Prices? It’s All About Supply and Demand

You might be wondering what the future holds for home prices. The answer largely depends on the balance of supply and demand, and it will vary by local market.

On a national scale, the number of homes for sale is increasing, but the inventory is still too low to fully meet the current demand from buyers. This ongoing imbalance keeps upward pressure on prices, even though the increase in available homes has caused the pace of price appreciation to slow down. Danielle Hale, Chief Economist at Realtor.com, explains it this way:

“Today’s low but quickly improving for-sale inventory has introduced more balance into the market than we would have otherwise expected. This shift should help home prices grow at a slower pace going forward.”

Another factor that could influence future prices is the projected decline in mortgage rates. Experts predict that as rates continue to fall, more buyers will re-enter the market in the coming months. If demand picks up again, this could lead to a renewed increase in home prices, even if it’s more gradual than in the past.

Why You Should Work with a Local Real Estate Agent

While national trends can provide a broad view, real estate is deeply local, especially when it comes to pricing. The dynamics in your neighborhood might be very different from the national average depending on local supply and demand. This is why it's essential to get insights from a knowledgeable real estate agent who understands your area’s market.

A local agent can be your go-to resource for the most up-to-date information on home prices in your community. They’ll help you make informed decisions based on what’s happening in your local market. If you’re planning to sell, they can ensure your home is priced accurately to attract buyers. And if you’re looking to buy, they’ll help you find the perfect home that fits both your budget and your needs.

Bottom Line

Although home prices are still increasing, the rate of growth has slowed. Whether you're considering buying, selling, or simply curious about your home’s value, partnering with a local real estate agent is the best way to get the personalized advice and guidance you need. Reach out today for expert insights and tailored market information that will help you navigate this evolving market confidently.