If you’re wondering what’s going on with home prices lately, you’re definitely not alone. With so much information floating around, it can be tough to figure out what your next move should be.
As a buyer, you might be concerned about overpaying, and if you’re thinking about selling, you could be worried about not getting the price you’re aiming for.
Here’s a simple breakdown to help make sense of the current housing market and give you a clearer picture of what’s really happening with prices—whether you’re thinking of buying or selling.
Home Price Growth Is Slowing, but Prices Aren’t Dropping Nationwide
Across the country, home prices are still rising, but the pace of that growth is starting to slow down. In other words, while prices aren’t increasing as quickly as they did in the past few years, they’re still going up. The data from Case-Shiller makes the shift from 2023 to 2024 pretty clear:
But don’t worry—just because you’re hearing about a “cooling” market doesn’t mean home prices are dropping. In fact, all the data shows continued growth, just not at the breakneck speed we saw when prices were skyrocketing a few years ago.
What’s Next for Home Prices? It’s All About Supply and Demand
If you’re wondering where prices might go from here, it really comes down to supply and demand—and that’s going to vary based on where you live.
Nationally, the number of homes for sale is slowly increasing, but there still aren’t enough to meet the demand from buyers. That’s keeping prices elevated, though the increase has slowed down. As Danielle Hale, Chief Economist at Realtor.com, puts it:
“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.”
Here’s another factor to keep in mind: Experts expect mortgage rates to continue declining, which could bring more buyers back into the market in the coming months. If that happens and demand increases, prices could tick up again.
We’re Here to Help Answer Your Questions
While national trends give a big-picture view, real estate is always about your local market. What’s happening in your neighborhood could be totally different depending on the supply and demand in your area.
If you’re thinking of buying or selling, or just curious about what your home might be worth, we’re here to help! Reach out to schedule a complimentary buyer consultation, and we’ll guide you through the latest market trends to make sure you’re ready for your next step.
BY KCM CREW | SEPTEMBER 11, 2024
