If you're curious about the recent trend in home prices, you're certainly not alone. There's a lot of information available, making it challenging to decide what to do next.

As a buyer, you might be anxious about overpaying for a property. If you're planning to sell, you could be worried about not achieving your desired selling price.

Here's a simple overview to clarify what's going on with prices, whether you're considering buying or selling.

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

Home price appreciation is slowing down across the country. This means that while home prices are still increasing, the rate of growth isn't as fast as it has been in recent years. The graph below uses data from Case-Shiller to illustrate this change from 2023 to 2024 clearly.

This doesn’t mean home prices are actually dropping. All the bars in this graph indicate that prices are still rising. So, when you hear discussions about prices cooling down, it actually means they’re not increasing as rapidly as they did during the big surge a couple of years ago.

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

You might be wondering where prices are headed next. The truth is, it all comes down to supply and demand, and it can differ quite a bit from one local market to another.

The number of homes available for sale is increasing across the nation, but it's still not enough to satisfy current buyer demand. This situation is putting upward pressure on home prices, even though the recent rise in inventory has led to a slowdown in price growth. According to Danielle Hale, Chief Economist at Realtor.com,

““. . . 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.”
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— Danielle Hale, Chief Economist at Realtor.com,

One more factor you might want to think about is how mortgage rates are expected to keep dropping. As these rates go down, more buyers are likely to come back into the market in the coming months. If demand increases again, we could see prices rise a little more.

Why You Should Work with a Local Real Estate Agent 

National trends can provide a broad understanding of the real estate landscape, but remember, real estate is really all about local dynamics—especially when it comes to pricing. What’s going on in your neighborhood can differ significantly from the national average due to local supply and demand. That’s why it’s so important to gather insights from a knowledgeable real estate agent in your area.

A local agent is your best resource for all things home prices, offering the latest data and trends that are specific to your area.

If you're thinking about selling, they can assist you in setting the right price for your house. When you're ready to buy, they can help you find the perfect home that suits both your budget and your requirements.

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