After more than a year of headlines predicting a housing market crash, the latest data tells a different story. Home prices may be gaining momentum again. Whether you're buying or selling, that's an important shift to keep an eye on.
The Numbers May Be Starting To Turn
For the past couple of years, home price growth has been slowing down, easing from about 7% in mid 2024, according to Redfin. But the latest data shows that trend may be changing. The slowdown appears to have reached its lowest point, and home price growth is starting to pick up again.
While a couple of months of data doesn't guarantee this trend will continue, there are several signs that suggest home price growth could keep gaining momentum.
For example, fewer housing markets are seeing prices decline. According to ResiClub and Zillow, about 36% of the 300 largest housing markets were experiencing price drops around the middle of last year. Since the beginning of this year, that number has steadily fallen. Today, only 23% of those markets are seeing modest price declines.
When fewer markets are seeing prices fall, it means more markets are starting to see home prices rise again.
Experts believe this trend still has room to grow. On average, they expect home prices to increase about 2.3% nationwide this year. For that forecast to happen, price growth will likely continue to pick up during the second half of 2026.
But Remember, Real Estate Is Local
While home prices may be starting to gain a little momentum nationally, that doesn't mean your local market is following the same trend.
National home prices are simply an average of hundreds of local markets. Some areas are seeing prices rise faster, while others are still cooling off. One reason the national average is starting to improve is that more metro areas are expected to see positive price growth this year.
Not long ago, the major metro areas were evenly split, with about half seeing home prices rise and the other half seeing prices fall. Now, the market is starting to shift in a more positive direction. According to Redfin, more than half of the major metro areas saw home prices increase just last month.
““. . . local markets continue to tell very different stories. Annual home price growth has changed little since the start of the year, but some markets, especially those supported by strong job and income growth in the West and more affordable Midwest markets, have seen notable acceleration in price gains.”
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What This Means for You
Home price headlines can be confusing because they don't always show the full story. A local real estate agent can help you understand what's really happening in your area and what current trends could mean for home prices in the months ahead.
That’s the smartest way to keep ahead of the market.
If you're buying, slower home price growth has been working in your favor. It has given you more negotiating power and made it easier to plan your budget. But if prices are starting to rise again in your area, buying sooner could mean paying less than if you wait until later this year.
If you already own a home, you've continued building equity even as price growth slowed. If prices keep gaining momentum, your equity could grow even faster. Lawrence Yun, Chief Economist at the National Association of Realtors, estimates the typical homeowner could gain about $16,000 in home equity this year. And if you're thinking about selling, that's an encouraging sign. Just keep in mind that many markets are still balanced, giving buyers plenty of options, so pricing your home correctly is still important.
Home price growth slowed over the past couple of years, but it's starting to show signs of picking up again. Whether you're buying or selling, let's connect so you can see what's happening in our local market and what it could mean for your next move.
Bottom Line
Home price growth slowed significantly over the past couple of years, but early signs show it's starting to pick up again. Whether you're buying or selling, let's connect so you can understand what's happening in our local market and how it could impact your next move.
