What's Really Happening with Home Prices?

If you’re wondering what’s going on with home prices lately, you’re definitely not the only one. With so much information out there, it can be hard to figure out your next move.

As a buyer, you might be worried about paying more than you should. And if you're thinking of selling, you might be concerned about not getting the price you're aiming for.

Here’s a quick breakdown to help clear things up and show you what’s really happening with prices—whether you're thinking about buying or selling.

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

Throughout the country, home price appreciation is moderating. This means that while prices are still going up, they aren’t rising as quickly as they were in recent years. If you look at the data from Case-Shiller, the shift from 2023 to 2024 becomes clear:

In 2023, home prices rose by 0.4% in March, 0.5% in April, and 0.7% in both May and June. But in 2024, we see a noticeable slowdown with price growth at 0.3% in March and April, 0.3% again in May, and 0.2% in June.

While you might hear talk about prices cooling, what that really means is they're not climbing as fast as they were before. But prices aren’t falling. The bars in the graph show continued growth, just at a slower pace.

What’s Next for Home Prices? It’s All About Supply and Demand

You might be wondering where prices are headed from here. The answer depends on supply and demand, and it’s going to vary by your local market.

Nationally, the number of homes for sale is going up, but there still aren’t enough homes to meet the demand from buyers. This is what’s keeping upward pressure on prices, even though the growth has slowed. Danielle Hale, Chief Economist at Realtor.com, notes:

". . . 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."

There’s also something else to keep in mind: experts say mortgage rates should decline in the months ahead. As rates drop, more buyers will likely re-enter the market, and if demand picks back up, prices could climb a bit more.

Why You Should Work with a Local Real Estate Agent

While national trends offer a big-picture view, real estate is always local—especially when it comes to prices. What’s happening in your neighborhood might differ from the national average, depending on the supply and demand in your area. That’s why it’s so important to get insights from a knowledgeable local real estate agent.

A local agent can provide up-to-date information and trends specific to your market. If you're thinking about selling, they can help you price your house right, and if you're buying, they can help you find the perfect home within your budget.

Bottom Line

Home prices are still rising, just not as fast as they were in the past. Whether you’re buying, selling, or just curious about the market, let’s connect so you can get the personalized guidance you need.