After years of soaring home prices, which left many potential buyers discouraged, there’s finally some good news: the rapid pace of price growth is slowing. While prices are still rising nationally, the increase is now much more moderate and in line with historical norms. Case-Shiller data, for example, shows a 3.8% year-over-year increase in November, a stark contrast to the double-digit jumps of 2021 and 2022.
This return to more typical home price growth makes homeownership more attainable, removing the sticker shock and unpredictable price jumps that previously hindered buyers. Simultaneously, steady appreciation ensures that a home purchased today remains a solid long-term investment.
Although national home price growth is moderate, real estate is hyper-local. Some markets are booming, while others are cooling or even declining. As CoreLogic Chief Economist Selma Hepp points out, “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.” Conversely, FHFA data shows other regions experienced slight price declines in November.
Because real estate is so local, understanding your specific market is key. National averages don’t tell the whole story. A local real estate agent has the expertise and resources to provide a complete picture of your area’s market and help you plan your move accordingly. With home price growth now moderating, a local agent can be invaluable in navigating any market fluctuations. How have these changing prices affected your home buying plans? Let’s connect and discuss your situation.