If you’ve been wondering what’s going on with home prices lately, you’re not alone. With so much information out there, it can be tough to make sense of it all—whether you're looking to buy a home or thinking of selling your home.
As a buyer, you may worry about overpaying, and as a seller, you might be concerned about not getting the price you want. So, let’s clear up some of the confusion by breaking down what’s really happening with home prices.
Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally
Across the U.S., home price appreciation is moderating. What this means is that home prices are still going up, but not as quickly as they were over the last few years. To illustrate this, take a look at the data from Case-Shiller (see graph below):
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Even though you might hear talk of prices "cooling," that doesn't mean prices are falling. The reality is that home prices are still increasing, but at a more manageable rate compared to the sharp spikes we saw a couple of years ago.
What’s Next for Home Prices? It’s All About Supply and Demand
So, where do we go from here? The future of home prices depends largely on supply and demand, and this can vary by local market.
On a national level, the number of homes for sale is rising, but it still isn’t enough to meet the demand from buyers. This imbalance keeps upward pressure on prices, even though the growth of home price appreciation has slowed. As Danielle Hale, Chief Economist at Realtor.com, explains:
“. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.”
Another factor that could influence home prices in the coming months is mortgage rates. Experts are predicting that mortgage rates will continue to decline, which could encourage more buyers to enter the market. If buyer demand picks up, it could drive prices higher, even if only slightly.
Why You Should Work with a Local Real Estate Agent
While national trends provide a big-picture view, real estate is local—especially when it comes to home prices. What's happening in Brookings, SD, or your specific neighborhood, might differ from national averages. Local market trends are influenced by the unique supply and demand conditions in your area, which is why it’s crucial to work with a local real estate agent who understands your market.
As your local expert, a real estate agent can provide you with the most up-to-date data and market trends specific to Brookings and the surrounding areas. Whether you’re buying a home or selling your house, a knowledgeable agent will help you navigate the local market and make sure you’re getting the most accurate pricing information.
If you’re thinking about selling, a local agent can help you set the right price for your home, ensuring it attracts serious buyers without leaving money on the table. And if you’re in the market to buy, they’ll help you find a home that fits your needs and budget.
Bottom Line
Home prices are still rising, just not as quickly as before. Whether you’re considering buying a home in Brookings, SD, selling your home, or simply curious about your property’s value, having local expertise can make all the difference. Let's connect today so you can get the personalized guidance you need to make the best decision for your real estate goals.
Posted by Shane Andersen on
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