Home Price Growth Is Moderating – Here’s Why That’s Good for You

Jodi Halpert | Owner, Jodi Halpert Real Estate | Berkshire Hathaway HomeServices

Over the past few years, home prices skyrocketed. That’s been frustrating for  buyers, leaving many wondering if they’d ever get a shot at owning a home.  But here’s some welcome news: that whirlwind pace of home price growth is  slowing down. 

Home Prices Are Rising at a Healthy Pace 
At the national level, home prices are still going up, but at a much more  moderate, normal pace. For example, in November, the year-over-year  increase in home prices was just 3.8% nationally, according to Case-Shiller.  That’s a far cry from the double-digit spikes that occurred in 2021 and 2022  (see graph below):

This more normal home price growth might make buying a home feel more  attainable for many buyers. You won’t face the same sticker shock or rapid  price jumps that made it hard to plan your purchase just a few years ago. 

At the same time, steady growth means the home you buy today will likely  appreciate in value over time. 

Prices Vary from Market to Market 
While the national story is one of moderate price growth, it’s important to  remember that all real estate is local. Some markets are seeing stronger  growth, while others are cooling off or even seeing slight declines. As Selma  Hepp, Chief Economist at CoreLogic, notes:

“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.” 

Meanwhile, 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 local market. A national average can’t tell the whole story. That’s where  working with a local real estate agent can really help. They have the tools and  expertise to give you the full picture of what’s happening in your area and how to plan for that in your move. 

Bottom Line 
Home prices are growing at a more manageable pace, and working with a  local real estate agent can help you navigate the ups and downs of your  specific market. 

How have changing home prices impacted your plans to buy? Let’s talk about it.