Home Prices: What’s Really Happening Right Now

Nichole Ehrbar
Dec 2, 2025
2 min read

Home prices are still higher than last year, but the pace of growth has slowed. Two major reports show small month-to-month softening, yet year-over-year values continue to rise.

If mortgage rates keep easing, buyer demand could strengthen again — and that may push prices higher going into 2026.

Here’s what this means for you as a buyer:

Prices are still higher than last year, so homes are holding their value.
But the rate of increase has slowed, which gives you a little more breathing room.
We may see a window of opportunity right now before rates drop again and buyer competition increases.

If rates fall, more buyers will re-enter the market — which usually means higher prices and more competition.

Translation: This moment may be your best chance to get in before the next wave of demand.

For sellers, here’s what the data means:

Your home’s value is still up compared to last year — that’s great news.
Appreciation has cooled, so buyers aren’t rushing at the same pace as before.
If mortgage rates continue to drop, demand is expected to pick back up.
When demand rises, prices tend to rise too, which benefits you.

Your leverage is still strong, especially if your home is well-priced and shows well. We just need to stay aligned with today’s market — not last year’s.

Here’s how to use this to motivate your sellers and reposition their property:

Prices are still higher than last year — but buyers are sensitive right now.
Showing that appreciation has cooled helps sellers understand why pricing strategy matters more than ever.
If buyers know rates may fall soon, they may hold off temporarily — meaning we need to capture the ones actively shopping now.
This is the perfect time to evaluate:

✓ pricing

✓ presentation

✓ marketing

✓ incentives (credit, closing cost help, rate buydown)