Confused by Home Price Headlines?

Whether you own a house or you’re looking to buy one, you probably care about home prices. But it’s not always easy to figure out what’s happening in the market, especially if you look at the headlines. One says home prices are falling. The next says they’re still climbing. Which one’s right? It comes down to where you live.

What’s Really Going on with Home Prices

Right now, there are more homes on the market than at any other time since November 2019. And with mortgage rates rising since the spring, those homes are taking longer to sell. One way to help a home sell quickly in that environment is to have a lower asking price.

According to HousingWire Data, the median asking price is down from $449k in early August to $435k just 2 months later. This is normal for this time of year.

Just keep in mind, that’s a national list price. It doesn’t show what homes in your area are actually selling for. So before you react to a headline, ask a local agent what’s happening locally.

Realtor.com explains:

“While national headlines might suggest a buyer’s market is taking hold, the reality on the ground depends heavily on where and what you’re trying to buy. Local trends can diverge sharply from national averages, especially when you factor in price range, property type, and post-pandemic market dynamics.”

The latest numbers from S&P Cotality Case-Shiller Index show how true that is. Over the past year, sales prices in Chicago rose almost 7%. In Seattle, they dipped about 1.6%. That’s a gap of nearly 9 percentage points between two major cities.

Bottom Line

National headlines can’t tell you what your home is worth or how much room you have to negotiate. Local data can. If you’re thinking about buying or selling, let’s look at how prices are moving in your area, so you can set your price or make your offer with confidence.