You hear people talking about home prices dropping and it’s natural to worry your house might be losing value. Here’s the thing: some local markets have seen small dips this year, but prices aren’t falling across the nation. Don’t let the headlines panic you.

Most of the country is actually seeing prices go up.

That might seem surprising given the headlines, but the map below, which uses year-over-year data from the Federal Housing Finance Agency (FHFA), makes it clear.

Let’s unpack what this actually means.

Most states are seeing prices go up (that's the blue on the map), not down. The gains aren't as large as in past years, but that’s fine — prices are still increasing. That widespread uptick is why National Association of Realtors data shows home prices are up 2.1% nationwide compared with last year.

The headlines don’t really highlight this. They thrive on the negative—but it’s not as bad as it sounds.

Yes, a few states have seen home values drop over the past 12 months (those orange areas on the map). That’s what everyone’s talking about, but here’s the full story the data actually tells.

Not everywhere is seeing declines. In the few states where prices are slipping, it’s only by a little — roughly between 0.1% and about 2% down.

Those were the same states where prices shot up too quickly during the pandemic housing boom. A cooldown was inevitable, and that’s what we’re seeing now. In those markets, prices are stabilizing — a return to normal, not a crash.

Simply put: home prices aren’t collapsing. This isn’t a disaster or a sign of bigger problems.

Most Homeowners Still Have Plenty of Value

And to underscore that point: even in the small handful of areas where prices fell, most homeowners are still well ahead. Zillow’s data backs this up.

• Only about 4% of homeowners owe more than their home is worth.

• That means the other 96% are still sitting on value above what they paid.

Don’t just take their word for it — look for yourself. Zoom out and you’ll see how much home prices have climbed over the last five years, which makes it clear why so many homeowners are doing well.

Across the country, prices have climbed nearly 49% over the past five years, and almost every market experienced double-digit growth during that period. That’s why you won’t see any orange on this map (shown below).

The reality is most homeowners still have big equity cushions. So those small dips of about 0.1% to 2% in some states are nothing — easily absorbed.

Don’t let the headlines freak you out. What’s happening with home prices this year looks very different depending on the neighborhood. A modest drop in some places doesn’t mean your home’s value is falling apart.

Some local markets are leveling off—usually the areas that jumped the most during the pandemic. You’re likely still in a good position.

Bottom Line

If you’re hearing chatter about price drops or a market crash, take a closer look at the data — that’s only true in a few local markets. Most of the country is still seeing home prices go up.

For most homeowners, the long-term benefits easily outweigh any recent slowdown.

If you want a clear picture of what's going on in our local market, let's talk.