If you’ve been keeping an eye on home prices lately, you might feel uncertain about the market's direction. You're not alone. Buyers may be worried about overpaying, while sellers might wonder if they’ll get their asking price. To help clear things up, here’s a breakdown of the current home price trends—whether you're buying or selling.

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

Across the U.S., the rapid pace of home price appreciation is starting to slow down. That means prices are still increasing, just not as fast as they did in previous years. Take a look at the graph below, which uses Case-Shiller data to show the shift from 2023 to 2024:

Despite hearing that prices are “cooling,” it’s important to note that home prices aren’t dropping. The graph shows that while price growth is decelerating, it’s still growth. This shift is a natural response to the skyrocketing prices of recent years, but rest assured, home values are still trending upward.

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

Where home prices go from here depends heavily on the balance between supply and demand, and this can vary significantly by region. Nationally, housing inventory is rising, but there still aren’t enough homes to meet buyer demand. This imbalance continues to put upward pressure on home prices, even if the rate of appreciation is slowing.

Danielle Hale, Chief Economist at Realtor.com, explains this well:
“. . . 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.”

Another factor to consider is mortgage rates. As experts predict rates will decline in the coming months, more buyers may return to the market. This increase in demand could lead to prices climbing again.

Why Local Expertise Matters

While national data provides a broad view of the market, real estate is ultimately local. What’s happening with prices in your neighborhood may differ from national trends depending on the local supply and demand. This is why partnering with a local real estate agent is essential.

Your agent will have the most up-to-date information on your area’s market. Whether you're selling and need to price your home accurately or buying and want to ensure you're making the right offer, a local agent can provide the expertise you need.

Bottom Line

Home prices are still rising, though at a slower pace than before. If you’re thinking about buying, selling, or simply curious about your home’s value, let’s connect. With personalized advice tailored to your local market, you can make informed decisions with confidence.