Hearing talk about home prices falling? That may leave you worried about whether your house is losing value. But here’s what you need to know. While some local markets have seen small price dips this year, home prices are not falling nationally. So, don’t let the headlines scare you.

The vast majority of the country is actually seeing prices rise.

While that may feel surprising after the headlines you’ve seen, the map below uses year-over-year data from the Federal Housing Finance Agency (FHFA) to make that clear:

Let’s break down what this really shows.

Most states are seeing prices rise (the blue in that map). Not fall. Now, the gains aren’t as big as they’ve been in recent years, but that’s okay. The story is still, prices are growing. And that positive majority is exactly why data from the National Association of Realtors (NAR) shows, nationally, home prices are up 2.1% compared to last year.

But the headlines don’t draw attention to this. They feed on the negative. But even that isn’t as bad as it sounds.

Yes, there are some states where homes have lost value over the past 12 months (the orange in the map above). That’s what all the chatter is drawing attention too. But here’s what the data really says.

The dips aren’t happening everywhere. And in the select states where prices are inching down, it’s slight. The range here is -0.1 to roughly -2%.

And those states are the ones where prices spiked too high, too fast during the pandemic housing boom. There was always going to be a come down period after that. Now, we’re in it. In those places, prices are leveling off. And that’s a sign of normalization, not collapse.

In plain terms: Home prices aren’t crashing. And this isn’t doom and gloom or the sign of broader trouble.

Most Homeowners Still Have Plenty of Value

Just to drive that point home, here’s one more thing to reassure you. Even in the few places where prices dipped slightly, most homeowners are still way ahead. Additional context from Zillow helps prove that point: 

• Only about 4% of homes are worth less than what the owner originally paid.
• And 96% of homes are still worth more than their homeowners paid for them.

But don’t just take their word for it, see for yourself. When you zoom out and look at how much home prices have grown over the past five years, it’s a lot easier to understand why so many homeowners are still in such great shape.

Nationally, prices are up almost 49% in the last 5 years alone, and just about everywhere saw double-digit price growth in that time frame. That’s why there’s no orange in this map (see below):

The truth is, across the board, homeowners are still sitting on substantial gains. So, the -0.1 to -2% declines some states are seeing now? That’s easily absorbed.

So, don’t let the headlines scare you. What’s happening with home prices this year varies a lot from one area to the next. But the takeaway is clear: a small dip in some areas doesn’t mean your home’s value is collapsing.

It means select local markets are correcting – and most of the time these are the ones that saw prices rise the most during the pandemic. You’re probably still in great shape.

Bottom Line

If you’re hearing talk about price drops or crashes, a closer look at the data can help put things in perspective. That’s only happening in some markets. Most of the nation is still seeing prices rise.

And for the vast majority of homeowners, the long-term gains far outweigh any recent softening.

If you want help understanding what’s happening in your local market, connect with a local real estate agent.

The housing market hasn’t felt this energized in a long time – and the numbers backing that up are hard to ignore. Mortgage rates have eased almost a full percentage point this year, and that shift is starting to wake up buyers.

Home loan applications have risen. Activity has picked up. And sellers who step in early could benefit from the momentum long before the competition catches on.

Let’s take a look at what’s happening behind the scenes and how you can take advantage of it.

When Rates Come Down, Buyer Activity Goes Up

In today’s market, buyer demand is closely tied to what happens with mortgage rates. As rates come down, applications for home loans go up. Rick Sharga, Founder and CEO of the CJ Patrick Company, explains it like this:

“We’re in an incredibly rate-sensitive environment today, and every time we’ve seen mortgage rates drop into the low-to-mid 6% range, we’ve seen an influx of buyers hit the market.”

And that’s exactly what the data shows. More people who were sidelined are applying for mortgages again now that borrowing costs have come down. Of course, that’s going to ebb and flow just like rates ebb and flow. But the bigger picture is, there’s been improvement as a whole since rates started coming down.

In fact, the Mortgage Bankers Association (MBA) shows the Mortgage Purchase Index is hovering at the highest level so far this year:

And that’s not the only sign of optimism. MBA also shows mortgage applications recently hit their highest point in almost 3 years too. A clear sign demand is moving in the right direction heading into 2026:

And just in case you were wondering, it’s not just pent-up demand coming out of the government shutdown that slowed some of the processing of government loans for a month or so. If you look back at the last graph, you’ll see the steady build-up of momentum throughout the entire year.

The big takeaway for you is this. Now that rates have come down, buyers are starting to ease back into the game. And that’s turning into real contracts on homes just like yours.

Home Sales Are Rebounding

Just to really drive home that this is trending in a good direction, the most recent report from the National Association of Realtors (NAR) shows pending home sales (homes that are under contract) are picking up too. The Pending Home Sales Index is also at the highest it’s been all year (see graph below):

And that means the market is ending the year on a high note and headed into 2026 with renewed energy. While that may not seem like a big shift, it’s a rebound worth talking about.

Pending home sales are a leading indicator of where actual sales are going. If more homes are going under contract, it’s a good sign more homes will actually close over the next two months, ultimately boosting sales. This could be part of why experts project home sales will inch higher in 2026 than they were in 2025 or in 2024.

Of course, this may ebb and flow a bit as we see some year-end volatility with mortgage rates. But, it shouldn’t be enough to change this overall trend. Expert forecasts say rates should stay pretty much where they are throughout 2026. That means the stage is set for this momentum to continue going into the new year.

What This Means for You

Here’s the opportunity. Selling now means:

• More buyer demand. As affordability improves, you could see more buyer traffic and home showings (if your house is priced and staged right). And the best part? The buyers who are re-engaging feel like they’ve already waited too long for this moment. So, they’ll be eager to move.
• Being ahead of the curve. Listing sooner rather than later puts you ahead of the game, before other sellers realize something’s shifted.

Whether you’ve been putting off selling because you thought buyers weren’t buying, or you took your house off the market because you weren’t getting any bites, this is your sign to act.

Bottom Line

Want to know what’s happening with buyer activity in your area, and what it could mean if you want to sell your house in the new year?

Talk to an agent about getting your house listed in early 2026, so you can take advantage of this momentum building in the market.

A lot of people are asking the same thing right now: “Is it even a good time to sell?” And the truth may come as a bit of a surprise…

For many homeowners, the answer is a strong yes.

Why? Because of one major factor working in your favor: your equity. Odds are, if you’ve lived in your home for a while, you know you have significant equity. But how much are we really talking about? The number might just change everything about your next move.

The Hidden Wealth of Homeownership

Here’s how it works. When you own a home, you build up something called equity.

Each time you make a mortgage payment, you’re chipping away at your loan balance. And that helps your ownership stake in your home grow. At the same time, home values typically rise – which drives up the overall value of your home.

When you put those two things together, you’re building wealth automatically, month after month, year after year.

And that combo can add up to real dollars that can make a real difference in your move. That’s especially true if you’ve lived in your house for a while, which many homeowners have. According to Realtor.com:

“Nearly half (45.2%) of today’s homeowners have lived in their home for more than 15 years, and 1 in 4 for over 25 years.”

If that’s you, just imagine what 15-25 years of payments + steady appreciation have done to your bottom line. It’s time you see how your equity stacks up over time.

What That Really Means in Dollars

This chart uses research coming out of Realtor.com to show an estimate of how much equity homeowners have built up depending on when they bought. For each time frame, it takes the median-priced home and uses it as the baseline example. The numbers are shocking, too. According to the study, if you bought the average-priced home in…

• The mid-90s? You could be sitting on over $400,000 in equity now.
• The early 2000s? You could have over $330,000, even with owning during the housing crash.
• In 2015? Even in that shorter 10-year time frame, many homeowners have already built nearly $285,000 in equity.

Of course, your actual number is going to vary based on the purchase price, any work you’ve done to the house, the size of your original down payment, and more. The point is…

A lot of homeowners are sitting on hundreds of thousands of dollars in equity without even realizing it.

Your Equity Could Power Your Next Move

Here’s where this becomes really important. That equity can offset nearly every concern you have about moving right now.

• Worried about taking on a higher mortgage rate? Your equity could cover a significant down payment. And the more money you put down, the less you need to finance at today’s rates.
• Unsure if you can compete in today’s market? Thanks to your equity, you may be able to buy your next house in cash. And an all-cash offer is something that’s going to appeal to a lot of sellers because they don’t have to worry about their buyer’s financing falling through at the last second.

Bottom Line

If you haven’t had someone help you understand the value of your home this year, now’s the perfect time to take another look. It doesn’t mean you have to sell. But it does mean you’ll at least know what you could be working with – and how far that number can take you.

If you want a custom professional equity assessment, talk to a local agent.