Why Slower Home Price Growth Is Good News for Buyers Right Now

  • Apr 30, 2025, 12:22 PM

Finally, some welcome news awaits those wishing to purchase a home — following years of skyrocketing increases, home prices are back to growing at a healthier, more sustainable pace.

Following back-to-back double-digit increases in 2021 and 2022, the national year-over-year growth from November 2023 to November 2024 was just 3.8%.

The slowing price increases are welcome news for many would-be buyers, especially if you are buying your first home and don’t currently have equity in another house to put on the market.

Meanwhile, the slow-but-steady growth also means today’s homebuyers will likely see their properties grow as they appreciate in the years ahead, giving you a chance to build equity in your home and accumulate more overall wealth.

According to a U.S. News & World Report story, experts predict home prices will continue to rise steadily for the remainder of the decade, as more inventory becomes available and interest rates are expected to remain near their current levels.

After falling to their lowest levels in almost 30 years following the COVID-19 pandemic early in this decade, the sales of existing homes are predicted to bounce back slowly through at least 2029.

While national trends show moderate price increases, trends vary across different geographical regions of the country. Some markets have experienced strong growth, while others have seen costs flatline or, in some cases, decrease slightly.

In a month-to-month comparison, home prices in New England and the West North-Central regions increased by nearly 1% in November 2024. However, prices decreased in south-central areas of the nation, including by more than one-half of a percentage point in the East South-Central region.

If you’re entering the homebuying market, it’s important to monitor not only national housing trends but especially those in your region.

This is where a local real estate agent becomes especially useful. No one knows local housing trends like professional agents.

Real estate agents are experts in local markets. They stay up to date on housing news and information, such as inventory levels, price fluctuations, neighborhood growth, and changes in interest rates. Using comparative market analysis (CMA) tools, they are equipped to determine if a home is properly priced.

As you consider purchasing a new home, our real estate lending team offers several resources through our Homeowners Education Center to help expand your knowledge. These free financial tools and resources include the:

  • “Ask the Expert” blog, which addresses purchasing a home in a seller’s market
  • Pathways to Homeownership, a free online education program for first-time homebuyers;
  • Saving for Homeownership fact sheet, which provides basic info on the overall cost of ownership, and the
  • Three Steps to Finding the Perfect Realtor strategy guide.

You can also explore CAFCU’s variety of home loan options. We offer borrowing options to suit a variety of lifestyles, including fixed-rate mortgages, first-time homebuyers’ loans, fresh-start mortgages, VA mortgage loans, and FHA mortgages. Our lending team is set to assist you in navigating every step of the way, as CAFCU offers various mortgage options designed to fit your needs.