Meet the Team
Loan Programs
New Construction LoansAll Loan Programs
Mortgage CalculatorsReviewsBlog
Apply Now
Tips

Are Home Prices Going To Come Down?

The CL Team
The CL Team
July 1, 2025

Today’s headlines and news stories about home prices are confusing and make it tough to know what’s really happening. Some say home prices are heading for a correction, but what do the facts say? Well, it helps to start by looking at what a correction means.

Here’s what Danielle Hale, Chief Economist at Realtor.com, says:

“In stock market terms, a correction is generally referred to as a 10 to 20% drop in prices . . . We don't have the same established definitions in the housing market.”

In the context of today’s housing market, it doesn’t mean home prices are going to fall dramatically. It only means prices, which have been increasing rapidly over the last couple years, are normalizing a bit. In other words, they’re now growing at a slower pace. Prices vary a lot by local market, but rest assured, a big drop off isn’t what’s happening at a national level.

The Real Estate Market Is Normalizing

From 2020 to 2022, home prices skyrocketed. That rapid increase was due to high demand, low interest rates, and a shortage of homes for sale. But, that kind of aggressive growth couldn’t continue forever.

Today, price growth has started to slow down, which is a sign the market is beginning to normalize. The most recent data from Case-Shiller shows that after being basically flat for a couple of months last year, prices are going up at a national level – just not as quickly as before (see graph below):

The CL Team Home Prices are Moderating Chart

The big takeaway? So far this year, there’s been a much healthier pace of price growth compared to the pandemic.

Of course, that’s what’s happening now, but you may be wondering what’s next for prices. Marco Santarelli, the Founder of Norada Real Estate Investments, says:

“Expert forecasts lean towards a moderation in home price growth over the next five years. This translates to a slower and more sustainable pace of appreciation compared to the breakneck speed witnessed in recent years, rather than a freefall in prices.”

It’s all about supply and demand. Increasing inventory plus limited buyer demand, due to relatively high mortgage rates, will continue to ease some of the upward pressure on prices.

What This Means for You

If you’re thinking about buying a home, slowing price growth is welcome news. Skyrocketing home prices during the pandemic left many would-be homebuyers feeling priced-out.

While it’s still a good thing to know the value of the home you buy will likely continue to go up once you own it, slowing price gains are making things feel more manageable. Odeta Kushi, Deputy Chief Economist at First American, says:

“While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help — so the dream of homeownership isn't boarded up just yet.”

Bottom Line

At the national level, home prices are not going down. And most experts forecast they’ll continue growing moderately moving forward. But prices vary a lot by local market. That’s where a trusted real estate agent comes into play. If you have questions about what’s happening with prices in our area, reach out.

‍

Share this post
Today’s headlines and news stories about home prices are confusing and make it tough to know what’s really happening. Some say home prices are heading for a correction, but what do the facts say?
https://clteam.us/post/are-home-prices-going-to-come-down

Discover more articles.

Stay informed with more of our informative blog posts.

Rates Take a Breather After Surprisingly Strong Jobs Report

Rates Take a Breather After Surprisingly Strong Jobs Report

A strong jobs report slowed recent mortgage rate improvements. While rates bumped up slightly, all eyes are now on the July 15 CPI report to see if inflation—and rate cuts—are on the horizon.
Read more
Moving On? Here’s How to Make This Market Work for Your Finances

Moving On? Here’s How to Make This Market Work for Your Finances

Thinking of selling? The market’s more balanced—and that’s good news. Learn how sellers are winning with smart pricing, flexibility, and strategy in today’s shifting housing landscape.
Read more
Rates Closing in on 8 Month Lows

Rates Closing in on 8 Month Lows

The Fed didn’t cut rates—but shifting expectations did push mortgage rates lower. Find out why markets are optimistic and what could impact rates in the days ahead.
Read more
View All
This is a Loan Production Office of Luminate Bank®
400 Executive Center Dr., Suite #108, Greenville, SC 29615

(864) 569-0741
origination@clteam.us

Hours: Monday to Friday 9am to 5pm
The CL Team
HomeMeet The TeamReviewsContact Us
Resources
CL Team BlogFirst-Time HomebuyersNew Construction LoansLoan ProgramsMortgage CalculatorsApply Now
Follow Us
LinkedIn
Facebook
Instagram

Caleb LeGrand NMLS 259691

Luminate Bank NMLS 1281698 Bank Headquarters 2523 S. Wayzata Blvd., Suite 100 Minneapolis, MN 55405 (952) 939-7200. This is not an offer to enter into an agreement. Information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines and any information, rates and programs are subject to change without prior notice and may not be available in all states. All loans are subject to credit and property approval. Luminate Bank is not affiliated with any government agency. All rights reserved. Member FDIC. Equal Housing Opportunity Lender.

Copyright © 2023-2022 CL Team at Luminate Bank. Made by Semmodo
Privacy PolicyCompany LicensesNMLS Consumer AccessAccessibility