Leave a Message

Thank you for your message. We will be in touch with you shortly.

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

Mike Doyle February 10, 2025



Over the past few years, home prices skyrocketed. That’s been frustrating for buyers, leaving many wondering if they’d ever get a shot at owning a home. But here’s some welcome news: that whirlwind pace of home price growth is slowing down.

Home Prices Are Rising at a Healthy Pace

At the national level, home prices are still going up, but at a much more moderate, normal pace. For example, in November, the year-over-year increase in home prices was just 3.8% nationally, according to Case-Shiller. That’s a far cry from the double-digit spikes that occurred in 2021 and 2022 (see graph below):

a graph of green and white linesThis more normal home price growth might make buying a home feel more attainable for many buyers. You won’t face the same sticker shock or rapid price jumps that made it hard to plan your purchase just a few years ago.

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

Prices Vary from Market to Market

While the national story is one of moderate price growth, it’s important to remember that all real estate is local. Some markets are seeing stronger growth, while others are cooling off or even seeing slight declines. As Selma Hepp, Chief Economist at CoreLogicnotes:

“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, other regions saw slight month-over-month declines in November, according to Federal Housing Finance Agency (FHFA) data (see graph below):

a graph of a graph showing different colored squaresWhat does this mean for you? It’s crucial to understand what’s happening in your local market. A national average can’t tell the whole story. That’s where working with a local real estate agent can really help. They have the tools and expertise to give you the full picture of what’s happening in your area and how to plan for that in your move.

Bottom Line

Home prices are growing at a more manageable pace, and working with a local real estate agent can help you navigate the ups and downs of your specific market.

How have changing home prices impacted your plans to buy? Let’s talk about it.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Housing Market Forecasts for the Rest of 2025

If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest … Read more

New Changes to an Environmental Law Could Create a Real Estate Boom in California

Housing developers may have thrown their hard hats into the air to celebrate the news that California Governor Gavin Newsom is reforming the California Environmental Q… Read more

An Operating Costs Crisis That’s Driving Many Landlords Out of Business

Over the past year, the gap between the number of active sellers and active buyers has widened to its largest margin since the wake of the Great Recession. According t… Read more

Real Estate

Key Questions to Ask During an Open House in Fountain Valley, CA

Essential Inquiries for Prospective Homebuyers in Fountain Valley

Half of OC has home-price declines. How did your ZIP do?

The priciest ZIP was Newport Beach 92661 with a $5.7 million median. Cheapest? Santa Ana 92701 at $447,000.

Think No One’s Buying Homes Right Now? Think Again.

If you’ve seen headlines saying home sales are down compared to last year, you might be thinking – is it even a good time to sell? 

Think It’s Better To Wait for a Recession Before You Move? Think Again.

Fear of a recession is back in the headlines. And if you’re thinking about buying or selling sometime soon, that may leave you wondering if you should reconsider the t… Read more

Rent vs. buy: LA-Orange County renters might save $105,000 over 5 years

Well, local renters enjoy the nation’s fourth-largest savings between what landlords charge and the cost of financing a house purchase.

Redfin Joins the Parade of Housing Bears—How Does Their Prediction Stack Up?

Let's Connect

For expert real estate services, reach out to Mike Doyle. Whether you're buying, selling, or renting, navigate the process with confidence. Contact him today to ensure a smooth and informed real estate journey.