In recent years, we've seen home prices soar, and that’s understandably left many buyers feeling frustrated and questioning if they’ll ever have the chance to own a home. However, there’s some good news on the horizon: the rapid increase in home prices is beginning to slow down.

Home Prices are Increasing at a Steady and Sustainable Rate

Home prices across the country are continuing to rise, but the pace has significantly slowed down to a more typical level. For instance, in November, the annual increase in home prices was only 3.8%, as reported by Case-Shiller. This is a stark contrast to the double-digit surges we saw in 2021 and 2022.

This more stable growth in home prices could make it feel like buying a home is within reach for many people. You won’t experience the same price shock or sudden increases that made planning your purchase difficult just a couple of years ago.

With steady growth, the home you purchase today is likely to increase in value over time.

Home Prices Differ Across Various Markets.

While the overall trend in the country shows moderate price growth, it's crucial to keep in mind that real estate is really a local matter. Some markets are experiencing significant growth, while others are slowing down or even facing small declines. As Selma Hepp, Chief Economist at CoreLogic, points out:

“Regionally, variations persist, as some affordable areas – including smaller metros in the Midwest — remain in high demand and continue to see upward home price pressures.”

Other areas experienced minor month-over-month drops in November, based on data from the Federal Housing Finance Agency (FHFA).

What does this mean for you? Knowing what's happening in your local market is essential. A national average doesn't capture everything. That's why it's beneficial to partner with a local real estate agent. They have the right tools and expertise to provide you with a complete understanding of your area and help you plan your next move effectively.

Bottom Line

Home prices are increasing at a steadier rate, and partnering with a local real estate agent can assist you in managing the fluctuations of your particular market.

How have the shifts in home prices affected your plans to purchase a home? I’d love to hear your thoughts on this.