What Is Going On With Home Prices?

If you're wondering about recent changes in home prices, you're not alone. With so much information out there, it can be challenging to determine your next steps. As a buyer you may be concerned about overpaying, and as a seller you might be unsure if you'll get the price you’re hoping for. Here’s a quick breakdown to help clarify what’s really happening with home prices—whether you’re buying or selling.

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

Across the country, home price growth is slowing down. In other words, prices are still increasing, but not as quickly as they have in previous years. The graph from Keeping Current Matters below, based on Case-Shiller data, illustrates the shift from 2023 to 2024:

While you may hear people say prices are cooling off, that doesn’t mean they’re falling. The graph clearly shows that prices are still growing, just at a slower rate compared to the sharp increases we saw in recent years.

What’s Next for Home Prices? It Depends on Supply and Demand

You might be wondering what direction prices are headed. The answer will depend on supply and demand, and it will vary depending on your local market.

On a national level, the number of homes for sale is increasing, but there still aren’t enough homes to meet buyer demand. This is keeping upward pressure on prices, even though the increase in inventory has caused price growth to slow. Danielle Hale, Chief Economist at Realtor.com, explains:

“Today’s low but quickly improving for-sale inventory has brought more balance to the market than expected… This should help home prices grow at a slower rate.”

Another factor that could affect future prices is mortgage rates. Experts predict mortgage rates will continue to decline, which could encourage more buyers to re-enter the market in the coming months. If demand picks up, prices may rise further.

Why You Should Work with a Local Real Estate Agent

While national trends offer a broad view, real estate is always about the local market—especially when it comes to prices. Conditions in your area may be different from the national average based on local supply and demand. This is why it’s essential to get insights from a local real estate agent. A knowledgeable agent can provide you with up-to-date, neighborhood-specific data and trends. If you’re planning to sell they can help you set a competitive price, and if you’re buying, they’ll guide you to homes that fit your budget and needs.

Bottom Line

Home prices are still increasing, just at a slower pace than before. Whether you’re buying, selling, or simply curious about your home’s value, reach out to our team of experienced agents today for a local analysis of the market that you are looking to buy or sell in.