Home Prices Are Rising—Here’s Why That’s Great News

If you’ve been following the housing market, you’ve likely heard that home prices are still climbing. In fact, experts report a 3.4% increase year-over-year as of November 2024, with an expected 3.8% increase by November 2025.

But don’t worry—this isn’t the runaway price surge we saw in previous years. Instead, we’re experiencing moderate, steady growth, which is actually a win for both buyers and sellers.

Why a Balanced Market is a Good Thing

After years of rapid and sometimes unpredictable price spikes, the market is finally finding stability. A more sustainable pace of growth means a healthier real estate environment for everyone.

What This Means for Homebuyers

• Less Competition – Prices are increasing steadily, giving buyers more time to find the right home.
• Sustainable Appreciation – Homes are still gaining value, making them a smart long-term investment.
• More Options – As market conditions normalize, more sellers are listing their homes, giving buyers better choices.

What This Means for Homeowners & Sellers

• Your Equity is Growing – A steady rise in home values means homeowners are building wealth.
• Serious Buyers Are Still Looking – Even with rising prices, demand remains strong, and well-priced homes are selling.
• More Predictability – Unlike past market spikes, this stability allows sellers to price their homes competitively and attract the right buyers.

A Look Back: When Was the Last Balanced Market?

The last time we saw a truly balanced housing market was 2012-2016. During that period:

• Home prices grew at a steady, healthy pace.
• Interest rates remained favorable.
• Inventory levels supported both buyers and sellers.

Why This Matters

• For Buyers: Prices weren’t skyrocketing, making homeownership more accessible.
• For Sellers: Steady appreciation gave sellers confidence in their home’s value.
• For the Market: A win-win scenario that kept transactions flowing without extreme price fluctuations.

What’s Next for the Housing Market?

Experts predict continued steady price growth and potentially lower mortgage rates in 2025. This could mean:

• Increased home sales as affordability improves.
• More refinancing opportunities for homeowners.
• A continued strong investment in homeownership.

If you’ve been waiting for the right time to buy or sell, this could be your perfect window of opportunity!

Ready to Make a Move? Let’s Talk!

Whether you’re thinking about buying, selling, or investing, understanding the market is key. Let’s connect and find the best strategy for your real estate goals in 2025!

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.