While a few local markets have seen small price declines,
home values are not dropping nationwide. In fact, most areas are still experiencing growth. According to the Federal Housing Finance Agency, the majority of states are seeing year-over-year price increases. The National Association of Realtors also reports that home prices are up about 2.1% compared to last year.
In the few markets where prices have dipped, the changes are minor—typically between -0.1% and -2%. These adjustments are happening in areas that saw rapid price spikes during the pandemic, meaning this is a normal correction, not a crash.
More importantly, most homeowners are still in a strong position. Data from Zillow shows that 96% of homes are worth more than what their owners paid.
Over the past five years, home prices have risen significantly, leaving most homeowners with solid equity and long-term financial security.