In recent years, home prices skyrocketed, leaving many potential buyers wondering if they'd ever be able to afford a home. But here's some good news: the rapid price increases are finally slowing down.

Home Prices Are Rising at a More Manageable Rate

Nationally, home prices are still on the rise, but the pace has significantly slowed. For example, in November, the year-over-year increase was just 3.8%, according to Case-Shiller. This is a huge shift from the double-digit price hikes seen in 2021 and 2022 (see graph below):

This more moderate growth makes homeownership feel more achievable for many buyers. Gone are the days of unpredictable price jumps that made it hard to plan. While prices are still increasing, they’re doing so at a much steadier rate, meaning the home you buy today will likely continue to appreciate in value over time.

Prices Vary by Market

Though national prices are increasing at a slower pace, real estate is always local. Some markets are seeing stronger growth, while others are leveling off or even experiencing small declines. As Selma Hepp, Chief Economist at CoreLogic, points out:

"Regionally, some affordable areas — especially smaller metros in the Midwest — are still in high demand and seeing price increases."

At the same time, other regions saw slight month-over-month declines in November, according to Federal Housing Finance Agency (FHFA) data (see graph below):

What does this mean for you? It’s crucial to understand what’s happening in your specific market, as national trends don't tell the full story. A local real estate agent can provide you with the expertise and insights needed to navigate your area’s market and plan your next move accordingly.

Bottom Line

Home prices are growing at a more sustainable pace, and working with a local real estate agent can help you understand your specific market and how to approach your home purchase.

How have changes in home prices affected your homebuying plans? Let’s chat about it!