Worried About Your Home’s Value? Here’s What the Headlines Aren’t Saying

Hearing claims that home prices are falling? It’s natural to wonder if your home’s value is slipping. Here’s the key takeaway: while a few local markets have seen minor dips this year, prices are not declining nationwide—so the headlines don’t tell the whole story.

Most of the country is still seeing home prices move higher.

That may sound surprising given recent headlines, but the map below—based on year-over-year data from the Federal Housing Finance Agency (FHFA)—shows exactly where values are rising.

Here’s what the data actually tells us.

Most states are seeing home prices increase—the blue on the map—not decline. While the pace of growth has cooled compared to recent years, prices are still moving higher. That’s why National Association of Realtors (NAR) data shows national home prices up 2.1% year over year.

The headlines rarely focus on that. They tend to spotlight the negative—and even that isn’t as dire as it sounds. Yes, a handful of states have seen home values decline over the past 12 months (shown in orange on the map). That’s what much of the conversation latches onto. But the data tells a more complete story.

These declines aren’t widespread. And in the few states where prices have edged lower, the pullbacks are modest—generally ranging from about -0.1% to -2%.

Those states are the ones that saw prices surge the fastest during the pandemic boom. A pullback was always likely after that kind of run-up—and that’s what we’re seeing now. Prices in those markets are settling, which points to normalization, not a collapse.

Bottom line: Home prices aren’t crashing. This isn’t a warning sign of broader trouble.

Most Homeowners Still Hold Significant Value

To reinforce the point, here’s one more reassuring stat. Even in the small number of markets where prices have dipped slightly, most homeowners are still well ahead. Zillow data makes that clear:

• Only about 4% of homes are worth less than their original purchase price
• 96% of homes are still worth more than what their owners paid

Don’t just take that at face value—look at the longer view. When you step back and examine home price growth over the past five years, it becomes clear why so many homeowners remain in a strong position.

Nationally, home prices are up nearly 49% over the last five years, with almost every market posting double-digit gains during that period. That’s why you won’t see any orange on the map below.

The reality is most homeowners are still sitting on significant gains. Against that backdrop, the -0.1% to -2% declines seen in a few states are easily absorbed.

So don’t let the headlines drive the narrative. Home price trends vary widely by location, but the takeaway is simple: a modest dip in select markets does not mean your home’s value is collapsing. It reflects normal market adjustments—often in areas that experienced the sharpest pandemic-era growth. Chances are, you’re still in a very strong position.

Bottom Line

If headlines about price drops or crashes have you uneasy, the data provides needed perspective. Declines are limited to a small number of markets, while most of the country is still seeing prices rise. And for the vast majority of homeowners, long-term appreciation far outweighs any recent softening.

To understand what this means for your specific area, connect with a local real estate professional.

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