If you’ve been keeping an eye on home prices recently, you're not alone. With so much information out there, it can be tough to figure out what’s really going on and how to navigate it—whether you’re planning to buy or sell.

As a buyer, you might be worried about overpaying, while sellers may be concerned about whether they’ll get the price they’re hoping for. So, let’s break down what’s really happening with home prices and what it means for you.

Home Price Growth Is Slowing, But Prices Aren’t Dropping Nationally

Across the country, home price appreciation is slowing down. This means prices are still increasing, just not at the rapid pace we saw in previous years. The graph below, using data from Case-Shiller, clearly shows how price growth has shifted between 2023 and 2024:

But here’s the key takeaway: prices aren’t dropping. Every bar in the graph represents price growth. When you hear that prices are "cooling," it just means they’re not skyrocketing like they did in the past few years.

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

Wondering where prices are headed? The answer boils down to supply and demand, which can vary by region.

On a national level, the number of homes for sale is increasing, but there’s still not enough to meet the demand from buyers. This keeps upward pressure on prices, even as the rate of price growth slows. As Danielle Hale, Chief Economist at Realtor.com, explains:

"Today’s low but steadily improving inventory has brought more balance to the market than expected . . . This should help home prices maintain a slower pace of growth."

Another factor to keep in mind is mortgage rates. Experts predict that mortgage rates may continue to decrease, which could draw more buyers back into the market. If demand picks up again, that could drive prices higher in some areas.

Why You Should Work with a Local Real Estate Agent

While national trends offer a big-picture view, real estate is highly local—especially when it comes to home prices. What’s happening in your neighborhood could look very different from the national averages depending on local supply and demand. That’s why having a knowledgeable local real estate agent is essential.

A local agent can give you the most up-to-date data and insights specific to your area. If you’re selling, they’ll help you price your home competitively. If you’re buying, they’ll find you the right home that fits both your budget and your needs.

Bottom Line

Home prices are still rising, though at a slower rate than in recent years. Whether you’re thinking of buying, selling, or simply curious about the value of your home, let’s connect. Having a local expert by your side can provide the personalized guidance you need to make informed decisions in today’s evolving market.