Headlines Have You Worried about Your Home’s Value? Read This.
If you’ve seen headlines saying home prices are dropping, it’s natural to worry about your home’s value. But here’s the truth:
Home prices are not falling nationwide.
And for most homeowners, values are still rising.
While a few local markets have seen small dips, the majority of the country is experiencing year-over-year price growth.
What the Data Really Shows
According to year-over-year data from the Federal Housing Finance Agency (FHFA):
Most states are seeing prices rise, not fall
Price growth has slowed compared to past years—but it’s still positive
Nationally, home prices are up 2.1% compared to last year (per NAR)
That’s not a crash. That’s a more normal, balanced market.
What About the Areas Where Prices Did Dip?
Yes, there are a few states where prices declined—but the key word is slightly.
Most declines range from about -0.1% to -2%
These areas are largely markets where prices surged the fastest during the pandemic
What we’re seeing now is a cool-down, not a collapse
In other words, prices in those markets are leveling out—not crashing.
Most Homeowners Are Still Way Ahead
Even with small dips in some areas, homeowners are still in strong positions.
According to Zillow:
Only 4% of homes are worth less than what the owner paid
96% of homes are still worth more than their purchase price
And when you zoom out, the picture becomes even clearer:
Home prices are up nearly 49% nationally over the last five years
Almost every market saw double-digit growth during that time
That’s why today’s small declines are easily absorbed.
The Big Picture
Here’s the takeaway:
Home prices are not crashing
Most markets are still seeing growth
Small dips in a few areas are normal after rapid price increases
The vast majority of homeowners still have significant equity
So don’t let dramatic headlines create unnecessary fear. What’s happening depends heavily on where you live, not what’s being said nationally.
Bottom Line
A small dip in some markets doesn’t mean your home is losing value overall.
For most homeowners, long-term gains still far outweigh any recent softening. If you want a clear picture of what’s happening in our local market, let’s connect and take a look at the data together.
Finding ways to make your credit score better could help you get a lower mortgage rate. When you’re ready to get the process started, let’s connect.