The Real Story Behind What’s Happening with Home Prices

The Real Story Behind What’s Happening with Home Prices

If you’re curious about the recent trends in home prices, you’re not alone. With so much information available, it can be challenging to decide your next steps.

As a buyer, you might worry about overpaying. As a seller, you could be concerned about not achieving your desired price.

Here’s a quick breakdown to clarify the current situation and provide insight into what’s really happening with home prices, whether you’re considering buying or selling.

Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally

Across the country, home price appreciation is slowing. Prices are still increasing, but the pace of growth has slowed compared to recent years. The graph below, using data from Case-Shiller, illustrates this shift from 2023 to 2024.

Rest assured, this doesn’t indicate that home prices are falling. In fact, all the bars in the graph reflect continued price growth. When you hear about prices cooling, it simply means they’re not rising as rapidly as they did during the sharp increases of a few years ago.

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

You might wonder where home prices are headed next. The answer largely depends on supply and demand and will vary by local market.

Nationally, the number of homes for sale is increasing, but it’s still insufficient to meet current buyer demand. This imbalance continues to put upward pressure on prices, even though the recent rise in inventory has slowed the rate of home 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.” 

Here’s another factor that could influence future price trends: experts anticipate that mortgage rates will continue to decline. If this happens, more buyers are likely to enter the market in the coming months. Increased demand could lead to further upward pressure on home prices.

Why You Should Work with a Local Real Estate Agent 

While national trends provide a broad overview, real estate is inherently local, especially regarding prices. What’s happening in your neighborhood may differ from the national average due to varying local supply and demand dynamics. That's why it’s essential to seek insights from a knowledgeable real estate agent.

As your go-to resource for information on home prices, a local agent can offer the most up-to-date data and trends specific to your area. If you're planning to sell, they can help you price your home accurately. And when you're ready to buy, they can find the perfect home that fits your budget and needs.

Bottom Line

Home prices are still increasing, but at a slower pace than before. Whether you're considering buying, selling, or simply curious about your home's current value, let's connect to get the personalized guidance you need.