After years of rapid appreciation, the housing market is showing signs of a shift. Home prices are not necessarily crashing, but the breakneck growth of the past few years is slowing—if not reversing—in some areas. For buyers sidelined by affordability issues and for sellers hoping to cash out at the peak, this change has wide-reaching implications.
Slower Price Growth Across the U.S.
Many markets that saw double-digit annual price gains during the pandemic are now experiencing much more modest increases—or even slight declines. Factors like higher mortgage rates, inflation, and economic uncertainty have cooled buyer demand, forcing sellers to lower prices or accept smaller profits.
According to national data, price growth has slowed to low single digits in most regions, with some metro areas, particularly those that overheated during the pandemic (such as Austin, Phoenix, and Boise), showing year-over-year price declines.
Why Prices Are Cooling
What This Means for Buyers
This shift may offer some relief. Slower price growth means buyers may have more time to make decisions and more leverage in negotiations, such as asking for closing cost credits or home repairs. However, higher mortgage rates may still keep monthly payments high even if home prices dip slightly.
What This Means for Sellers
Sellers can still command strong prices, especially in high-demand areas, but the days of multiple offers within hours are fading. Pricing a home correctly from the start and being open to negotiation will be critical. Look for other ways to sell your home. Offer assistance with Closing Costs. Offer to buy down the buyer’s interest rate.
The Bottom Line
The real estate market is not crashing—but it is normalizing. This cooling period may restore some balance between buyers and sellers leading to healthier long-term growth. Whether this becomes a lasting trend or a temporary pause will depend on broader economic forces, including interest rates, employment, and consumer confidence.