Worried About Falling Home Values? Here’s What the Data Really Says

Seeing headlines about home prices dropping can be unsettling, especially if you’re a homeowner wondering whether your property is losing value.

Here’s the truth: home prices are not crashing nationally, and most homeowners are still in a very strong position.

Yes, a few specific markets have seen small price dips recently. But across most of the country, including many parts of Connecticut, prices are still rising or stabilizing, not collapsing. So before you let the headlines create unnecessary fear, it helps to understand what’s really happening in today’s housing market.

Home Prices Are Still Rising in Most Areas

Despite what the news cycle suggests, national housing data shows that home prices are still up year-over-year. The growth isn’t as fast as it was during the pandemic boom, but that’s actually healthy.

A slower, more stable pace of appreciation is a sign of a normalizing real estate market, not a failing one.

The recent noise is coming from a small number of markets that experienced extreme price spikes over the past few years. Those areas are now seeing slight corrections, often in the range of less than 1% to around 2%, which is not a crash. It’s a market finding balance again.

A Small Dip Doesn’t Erase Years of Growth

Even in markets where prices have softened slightly, most homeowners are still far ahead.

Long-term appreciation has been so strong that minor short-term declines barely make a dent in overall equity. Over the past five years alone, home values nationwide have increased dramatically, meaning the vast majority of homeowners still have significant equity in their properties.

In fact, only a very small percentage of homeowners today owe more than their home is worth. That means most people still have financial flexibility, security, and options whether they plan to sell, refinance, or simply stay put.

What’s Really Happening Is Market Normalization

The housing market from 2020 to 2022 was not normal. Prices rose at historic rates due to ultra-low interest rates, tight inventory, and massive demand.

What we’re seeing now is not a collapse, it’s a correction toward balance.

• Inventory is slowly increasing

• Buyer demand is more measured

• Price growth is moderating instead of surging

That’s what a healthier, more sustainable market looks like.

So when you hear “prices are down,” what that often means is: prices aren’t skyrocketing anymore and in a few overheated markets, they’re adjusting slightly. That’s not bad news. That’s stabilization.

Why Local Data Matters More Than National Headlines

Real estate is always local.

National headlines don’t reflect what’s happening in your town, your neighborhood, or your specific price range. Some areas are still appreciating, some are leveling out, and a few are correcting slightly but none of that tells you what your home is doing without looking at local data.

That’s why working with a local real estate expert in Connecticut matters.

At Joseph Malerba Real Estate, eXp Realty, we look at:

• Recent neighborhood sales

• Local buyer demand

• Inventory trends in your specific market

• Pricing patterns by home type and price point

That’s how you get a clear, accurate picture, not from national headlines designed to grab attention.

The Bottom Line

Home values are not collapsing.

Most homeowners are still in a strong equity position, and most markets are seeing stable or rising prices, just at a more sustainable pace than during the frenzy of recent years.

So don’t let the headlines scare you. A small dip in select markets doesn’t mean your home is losing value or that the housing market is in trouble.

If you want to understand what’s actually happening with your home’s value in Connecticut, and how current trends affect your options, let’s connect.

📍 Joseph Malerba Real Estate, eXp Realty is here to help you make sense of the market and make confident decisions based on real data, not scary headlines.