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

by Kealan O'Neil

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

In recent years, home prices surged, making it tough for buyers to enter the market. But there's good news—price growth is now slowing to a more manageable pace.

Home Prices Are Increasing at a Steady Rate

On a national scale, home prices continue to rise, but at a more balanced and typical rate. In November, prices were up just 3.8% year-over-year, according to Case-Shiller—far from the double-digit increases seen in 2021 and 2022.

With home prices growing at a steadier pace, buying a home may feel more within reach. You won’t experience the rapid price jumps of previous years, making it easier to plan your purchase.

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

Prices Vary by Market

While the national trend shows moderate price growth, local markets tell different stories. Some areas are experiencing stronger increases, while others are cooling off or seeing slight declines. As Selma Hepp, Chief Economist at CoreLogic, explains:

“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, some regions experienced slight month-over-month declines in November, as reported by the Federal Housing Finance Agency (FHFA) (see graph below):

What does this mean for you? Understanding your local market is key since national averages don’t tell the whole story. That’s where a local real estate agent comes in—they have the tools and expertise to give you a clear picture of what’s happening in your area and help you plan your move accordingly.