The Home Price Shift Nobody Is Talking About Yet

If you’ve been wondering what’s next for home prices, there’s a shift starting to happen that you should know about. After a few years of big jumps, price growth slowed way down. But now, there are early signs it may be picking back up again. 

The graph above shows price growth cooled from around seven percent in mid-twenty-twenty-four to closer to three percent today. But look at the right side of the graph. It looks like it's starting to turn. These past two months, price growth appears to be picking up a little bit of steam. Now, a couple months of data doesn’t make a trend. But a few things back this up. Compared to earlier this year, fewer markets are seeing price declines right now. And, forecasts call for price growth to pick up a bit before end of year. But what matters most is what's happening here locally. Send me a message and I'll break down what prices are doing in our market and if we’re seeing the same thing in our area.

For the past few years, homeowners have watched the real estate market experience some of the most dramatic changes in recent history. Home values climbed rapidly, competition among buyers reached record levels, and many homes sold within days—often with multiple offers well above the asking price.

Since then, the market has naturally begun to normalize. Interest rates have increased, buyers have become more selective, and the pace of home price appreciation has slowed considerably.

But here's what's interesting… there are early signs that the market could be shifting once again.

While it's far too early to declare a major trend, several key indicators suggest that home price growth may be starting to gain momentum after a period of cooling.

A Look at Recent Home Price Trends

Over the past year, national home price appreciation has slowed significantly.

At its peak in mid-2024, annual home price growth was running at approximately 7%. More recently, that number has settled closer to 3%, representing a much healthier and more sustainable pace of appreciation.

For many buyers and sellers, this has been welcome news. A more balanced market creates realistic expectations and allows both sides to make informed decisions without the pressure of the frenzied market we experienced just a few years ago.

However, the latest data reveals something worth paying attention to.

The most recent two months show that home price appreciation may be beginning to accelerate again.

While two months certainly don't establish a long-term trend, it's enough to encourage market experts to take a closer look at what's happening.

Why This Matters

Markets rarely move in a straight line.

Instead, they tend to go through cycles of acceleration, stabilization, and adjustment.

The recent slowdown in appreciation wasn't necessarily a sign that home values were falling across the board—it simply meant that prices weren't increasing as quickly as they had been.

Now, several factors suggest that we could be entering another phase of moderate price growth.

For example:

• Fewer housing markets across the country are experiencing price declines than earlier this year.
• Buyer demand has remained resilient despite higher mortgage rates.
• Housing inventory is still relatively limited in many areas, helping support home values.
• Several industry forecasts expect home prices to continue appreciating through the remainder of the year, although at a healthy and sustainable pace.

Taken together, these indicators suggest that the market may be finding its footing after a period of adjustment.

National Trends Don't Always Tell the Local Story

One of the biggest misconceptions in real estate is assuming that what's happening nationally is exactly what's happening in every local market.

The reality is that real estate is local.

A national headline may report that prices are rising or falling, but your neighborhood could be experiencing something entirely different.

Some communities continue to see strong buyer demand and limited inventory, while others may have more available homes and longer marketing times.

That's why it's so important to understand what's happening in your specific market, not just across the country.

What This Means for Homeowners

If you've been considering selling your home, understanding current pricing trends is more important than ever.

Pricing your home correctly from the beginning remains one of the most important factors in achieving a successful sale.

If appreciation is beginning to strengthen again, homeowners who prepare and price strategically may find themselves in a favorable position as buyer activity continues.

On the other hand, waiting for "perfect" market conditions can sometimes mean missing today's opportunities.

Every homeowner's situation is different, which is why personalized advice is far more valuable than relying solely on national headlines.

Thinking About Buying?

Buyers should also pay attention to these trends.

If home prices begin appreciating more quickly again, today's prices could look more attractive several months from now.

That doesn't mean anyone should rush into buying a home, but it does reinforce the importance of being prepared and understanding your local market before the right opportunity comes along.

Having an experienced real estate professional who understands neighborhood-level trends can help you make informed decisions rather than reacting to headlines.

Let's Talk About What's Happening Here at Home

While national reports provide valuable insight, what matters most is what's happening right here in our local market.

Whether you're curious about your home's current value, wondering if now is the right time to sell, or simply want to understand what's happening in your neighborhood, I'd be happy to provide a personalized market update based on recent sales and current market conditions.

Every market is different, and having accurate, local information can make all the difference when planning your next move.

If you'd like to know what home prices are doing in your neighborhood—or you're curious about what your home may be worth in today's market—feel free to reach out. I'd be happy to provide a complimentary market analysis and answer any questions you may have.