CategoriesHome Price February 10, 2025 By

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

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

National home prices are rising at a normal pace—up 3.8% year-over-year in November, according to Case-Shiller.

That’s a far cry from the double-digit spikes that occurred in 2021 and 2022 (see graph).

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.

Steady growth means the home you buy today will likely increase in value over time.

Prices Vary from Market to Market

Real estate is local—some markets grow, others cool, and some even see a slight decline

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.”

Some regions saw slight monthly declines in November, per FHFA data. (see chart).

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 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: What Experts Say About Home Price Growth

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.

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