Headlines Have You Worried about Your Homes Value? Read This.

Hearing talk about home prices falling? That may leave you worried about whether your house is losing value. But heres what you need to know. While some local markets have seen small price dips this year, home prices are not falling nationally. So, dont let the headlines scare you.

The vast majority of the country is actually seeing prices rise.

While that may feel surprising after the headlines youve seen, the map below uses year-over-year data from the Federal Housing Finance Agency (FHFA) to make that clear:

Lets break down what this really shows.

Most states are seeing prices rise (the blue in that map). Not fall. Now, the gains arent as big as theyve been in recent years, but thats okay. The story is still, prices are growing. And that positive majority is exactly why data from the National Association of Realtors (NAR) shows, nationally, home prices are up 2.1% compared to last year.

But the headlines dont draw attention to this. They feed on the negative. But even that isnt as bad as it sounds.

Yes, there are some states where homes have lost value over the past 12 months (the orange in the map above). Thats what all the chatter is drawing attention too. But heres what the data really says.

The dips arent happening everywhere. And in the select states where prices are inching down, its slight. The range here is -0.1 to roughly -2%.

And those states are the ones where prices spiked too high, too fast during the pandemic housing boom. There was always going to be a come down period after that. Now, were in it. In those places, prices are leveling off. And thats a sign of normalization, not collapse.

In plain terms: Home prices arent crashing. And this isnt doom and gloom or the sign of broader trouble.

Most Homeowners Still Have Plenty of Value

Just to drive that point home, heres one more thing to reassure you. Even in the few places where prices dipped slightly, most homeowners are still way ahead. Additional context from Zillow helps prove that point:

• Only about 4% of homes are worth less than what the owner originally paid.
• And 96% of homes are still worth more than their homeowners paid for them.

But dont just take their word for it, see for yourself. When you zoom out and look at how much home prices have grown over the past five years, its a lot easier to understand why so many homeowners are still in such great shape.

Nationally, prices are up almost 49% in the last 5 years alone, and just about everywhere saw double-digit price growth in that time frame. Thats why theres no orange in this map (see below):

The truth is, across the board, homeowners are still sitting on substantial gains. So, the -0.1 to -2% declines some states are seeing now? Thats easily absorbed.

So, don't let the headlines scare you. Whats happening with home prices this year varies a lot from one area to the next. But the takeaway is clear: a small dip in some areas doesnt mean your homes value is collapsing.

It means select local markets are correcting and most of the time these are the ones that saw prices rise the most during the pandemic. Youre probably still in great shape.

Bottom Line

If youre hearing talk about price drops or crashes, a closer look at the data can help put things in perspective. Thats only happening in some markets. Most of the nation is still seeing prices rise.

And for the vast majority of homeowners, the long-term gains far outweigh any recent softening.

If you want help understanding whats happening in your local market, connect with a local real estate agent.