In recent years, home prices have soared, making it challenging for buyers and leaving many questioning whether homeownership was within reach. However, there’s good news—home price growth is finally starting to slow down.
Home Prices Are Rising at a Healthy Pace
On a national scale, home prices continue to rise, but at a much steadier, more typical rate. For instance, in November, home prices saw a 3.8% year-over-year increase, according to Case-Shiller. That’s a significant shift from the double-digit surges seen in 2021 and 2022 (see graph below).
This more typical pace of home price growth could make homeownership feel more within reach for many buyers. You’re less likely to experience the sticker shock or rapid price increases that made planning a purchase challenging in recent years.
Meanwhile, steady growth suggests that the home you buy today will likely gain value over time.
Prices Vary from Market to Market
While home prices are growing at a moderate pace nationally, real estate remains highly local. Some markets are experiencing stronger growth, while others are cooling or even seeing slight declines. As Selma Hepp, Chief Economist at CoreLogic, explains:
“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.”
At the same time, FHFA data shows that some regions saw slight month-over-month declines in November (see graph below).
What does this mean for you? Understanding your local market is key, as national averages don’t capture the full picture. This is where a local real estate agent can be invaluable. With their expertise and resources, they can provide insight into market trends in your area and help you navigate your next move with confidence.
Bottom Line
Home prices are rising at a more steady pace, and a local real estate agent can guide you through the shifts in your market. How have these changes affected your home-buying plans? Let’s discuss.
