Fresh data is showing a shift… here’s what it could mean for you.
For a long time, it felt like home prices had only one direction to go… up. But the latest numbers are hinting at a turning point. Whether you’re buying, selling, or just watching the market, this is a moment worth paying attention to.
Price growth is slowing
In June, home prices nationwide were up just 2.0% compared to last year — a tick lower than May’s 2.2%. Even bigger news? Monthly growth almost flatlined… up just 0.03% compared to 0.3% the month before. CoreLogic has even lowered its 2025 forecast from 3% growth to zero. That means some areas could see prices slip.
Some areas are cooling faster than others
National averages don’t tell the whole story:
- West Coast & Sun Belt: Many cities here are seeing the sharpest declines.
- Midwest & Northeast: Still posting solid gains in places like Buffalo and Indianapolis.
- Inventory factor: Markets with falling prices usually have more homes for sale, shifting the balance toward buyers.
Affordability is still tight
Right now, buying is cheaper than renting in only 1% of U.S. metros. Rates have been a big hurdle for buyers, but if prices soften and rates hold steady (or dip), affordability could improve quickly.
If you’ve been holding back because you’re worried about credit or qualifications, it may help to know that perfect credit isn’t always required. Think you need perfect credit to buy a home? Think again.
Construction trends
Builders started more homes in June — up 4.6% month-over-month — but permits were down slightly and spending fell. Translation: we’re still not building enough homes to solve the shortage anytime soon.
What this could mean for you
- Buying: Watch for more listings and slower price jumps… you may have more room to negotiate.
- Selling: If your local market is cooling, listing sooner could help you capture stronger prices.
- Investing: Regional differences matter. The Midwest and Northeast may still offer steady growth potential.
At Art Wood Mortgage, I keep a close eye on these shifts so my clients can make confident decisions. If you’re wondering how this market change could affect your plans, let’s talk through your options.
