Headlines are saying home prices are starting to dip in some markets. And if you’re beginning to second-guess your plans based on what you’re hearing in the media, here’s what you need to know.

A few metros are indeed seeing slight price drops. But don’t let that overshadow this simple truth. Home values almost always go up over time (see graph below):

While everyone remembers what happened around the housing crash of 2008, that was the exception, not the rule. It hadn’t happened before, and hasn’t since. Many market dynamics were drastically different back then as well. From relaxed lending standards to a lack of homeowner equity, and even a significant oversupply of homes, it was very different from where the national housing market is today. So, every headline about prices slowing down, normalizing, or even dipping doesn’t need to trigger fear that another major crash is on the horizon.

Here’s something that explains why short-term dips usually aren’t a long-term deal-breaker.

What’s the Five-Year Rule?

In real estate, you may hear references to the five-year rule. The idea is that if you plan to own your home for at least five years, short-term price dips usually don’t hurt you much. That’s because home values almost always go up in the long run. Even if prices drop a bit for a year or two, they tend to bounce back (and then some) over time.

Take it from Lance Lambert, Co-Founder of ResiClub:

“. . . there’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time.”

What’s Happening in Today’s Market?

Here’s something else to put your mind at ease. Currently, most housing markets are still experiencing rising home prices, albeit at a slower pace than they were a few years ago.

However, in the major metros where prices are starting to cool slightly (as indicated by the red bars in the graph below), the average drop since April 2024 is only about 2.9%. That’s not a significant decline, like the one we saw back in 2008.

When you examine the graph below, it’s clear that prices in most of those markets have increased significantly compared to five years ago (the blue bars). So, those homeowners are still ahead if they’ve been in their house for a few years or more (see graph below):

The Big Picture

Over the past 5 years, home prices have risen a staggering 55%, according to the Federal Housing Finance Agency (FHFA). So, a slight short-term dip isn’t a significant loss. Even if your city is one where they’re down 2% or so, you’re still up far more than that.

And if you break those 5-year gains down even further, using data from the FHFA, you’ll see home values are up in every single state over the last five years (see map below):

That’s why it’s important not to stress too much about what’s happening this month, or even this year. If you’re in it for the long haul (and most homeowners are), your home is likely to grow in value over time.

Bottom Line

Yes, prices can shift in the short term. However, history shows that home values almost always go up, especially if you live there for at least five years. So, whether you’re considering buying or selling, remember the five-year rule and take comfort in the long view.

When you think about where you want to be in five years, how does owning a home fit into that picture?

Let’s connect to get you there.

If you’re a first-time homebuyer, you might feel like the odds are stacked against you in today’s market. However, there are resources and programs available that can help – if you know where to look. And one thing that can make homeownership easier to achieve? An FHA home loan.

They’re designed to help you overcome some of the biggest financial hurdles in the homebuying process – and that’s why so many first-timers are using them to make their purchase.

Whether you’re dreaming of ditching rent, planting roots, or just wanting a place that’s truly yours, an FHA home loan could be the path that gets you there sooner than you think.

Buying Your First Home Probably Doesn’t Feel Easy Right Now

While the motivation to buy a home remains strong for many people, affordability is a significant challenge today. According to a survey from 1000WATT, potential first-time buyers say their top two concerns are saving enough for their down payment and making the monthly mortgage payments work at today’s home prices and mortgage rates (see graph below):

That’s Where FHA Loans Come In

FHA loans help many first-time buyers overcome these challenges.

In fact, according to Intercontinental Exchange (ICE), the average first-time buyer using an FHA loan puts down just $16,000. That’s a big difference from the $77,000 they’re putting down with the typical conventional mortgage (see graph below):

Essentially, buyers who use an FHA loan may not need to come up with as much cash upfront. But the perks don’t stop there. You may also be able to pay less monthly, too.

That’s because, a lot of the time, the mortgage rate on FHA loans can be lower. Bankrate says:

“FHA loan rates are competitive with, and often slightly lower than, rates for conventional loans.”

So, if you’re thinking about buying your first place, an FHA loan may be worth exploring.

Because of the potential for lower down payment requirements and maybe even a lower mortgage rate, it could help with the two most common hurdles first-time buyers face today – saving enough money upfront and affording the monthly payment.

A trusted lender can guide you through the details, compare your options, and help you determine which loan type is most suitable for your situation.

Bottom Line

With the right loan and the proper guidance, homeownership may be more achievable than you think.

Would you like to discuss your options further? A trusted lender is there to help.

Now that buyers have more options for their move, you need to be more intentional about ensuring your house looks its best when you sell. Proper staging can be a great way to achieve just that.

What Is Home Staging?

It’s not making your house look super trendy or like it belongs in a magazine. It’s helping it feel welcoming and move-in ready, so it’s easier for buyers to picture themselves living there.

It’s essential to understand that there’s a specific time frame for staging. It can include everything from simple tweaks to more extensive setups, depending on your needs and budget. But a little bit of time, effort, and money invested in this process can make a difference when you sell, especially in today’s

A study from the National Association of Realtors (NAR) shows staged homes sell faster and for more money than homes that aren’t staged at all (see below):

Which Rooms Matter Most?

The best part is, odds are you don’t have to stage your whole house to make an impact. According to NAR, here’s where buyers say staging can make the most significant difference (see graph below):

As you can see, agents who regularly interact with buyers agree that the most important spaces to stage are the rooms where buyers will spend the most time, such as the living room, primary bedroom, and kitchen.

While this can give you a good general idea of what may be worth it and what’s not, it can’t replace the expertise of a local agent.

How an Agent Helps You Decide What You Need To Do

Agents are experts on what buyers are looking for in your area because they receive that feedback frequently during showings, home tours, walkthroughs, and from other agents. And they’ll see insights to give their opinion on your specific house and what areas may need a little bit of staging help, like if you need to:

• Declutter and depersonalize by removing photos and personal items
• Arrange your furniture to improve the room’s feel and make it feel bigger
• Add plants, move art, or rearrange other accessories

Many buyers can use the agent’s staging advice as their sole guidance. However, if your home requires more significant transformation, or it’s empty and could benefit from rented furniture, a great agent will be able to determine if bringing in a professional stager might be a good idea as well. Please note that a higher level of help comes with a higher price tag. NAR reports:

“The median dollar value spent when using a staging service was $1,500, compared to $500 when the sellers’ agent personally staged the home.”

A local agent will help you weigh the costs and benefits based on your budget, your timeline, and the overall condition of your house. They’ll consider how quickly similar homes are selling nearby and what buyers are expecting at your price point.

Bottom Line

Staging doesn’t have to be over-the-top or expensive. It just needs to help buyers feel at home. A great agent will help you determine the level of staging that best aligns with your goals.

Which room in your house do you think would make the biggest impression on a buyer?

Let’s walk through your home together and chat about what will make your house stand out.

Many buyers are holding off on their plans these days, hoping that mortgage rates will drop, perhaps even back to the historic low of 3% from a few years ago. But here’s the thing: those rates were never meant to last. They were a short-term response to a particular moment in time. And as the market finds its footing again, it’s time to reset expectations.

In 2020 and 2021, 3% mortgage rates provided buyers with a significant boost, offering more affordability, increased buying power, and greater opportunities. But those rates were a result of emergency economic policies during the height of a global pandemic. Now that the economy is in a different place, we’re seeing mortgage rates in the high 6% to low 7% range.

And while experts currently project a slight easing in the months ahead, most industry leaders agree: rates are not going back to 3%.

Instead, many forecasts suggest mortgage rates will settle in the mid-6% range by the end of the year, pending any major economic shifts. As Kara Ng, Senior Economist at Zillow, says:

“While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”

What Buyers Should Know

Essentially, waiting for 3% rates may mean waiting longer than you expect, and missing out along the way. Instead of putting off homebuying indefinitely, make a plan to get there and focus on what you can control: your budget, your credit, and working with a trusted professional who can explain exactly what’s happening in the current market – and how to navigate it.

Your local real estate agent and a trusted lender make all the difference in this process. The experts have insights into down payment assistance programs, alternative financing options, and negotiation strategies, as well as the experience you need on your side to understand creative ways that will make your plans work.

And here’s the biggest thing to keep in mind. Since rates are projected to ease slightly later this year, if that happens, it could bring some more buyers back into the market. Acting now gives you a head start, especially with more homes on the market than we’ve seen in years.

Think about it: if mortgage rates do come down, what do you think everyone else is going to do? That’s right – they’ll jump back in too.

Getting ahead of that rush could put you in a stronger position to find the right home with less competition. Realtor.com sums it up nicely:

“Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities . . . Rising home prices, rent increases, and inflation might outpace any future savings on interest. And if rates do fall sharply again, buyers could face an entirely different challenge: surging competition.”

Bottom Line

Those 3% rates everyone remembers from a few years ago were the exception, not the rule.

Now that they’re settling into new territory, it’s a good time to adjust your expectations and learn more about where things are heading as this market shifts.

A local real estate agent and a trusted lender will be your best resources, always keeping you up-to-date and informed, so you can make informed decisions and build a plan that works for you.

Lately, it feels like every headline about the housing market comes with a side of doubt. Are prices going up or down? Are we headed for a crash? Will rates ever come down? And all the media noise may leave you wondering: Does it make sense to buy a home right now?

But here’s one thing that doesn’t get enough airtime. Real estate has always been about the long game. And when you look at the big picture, not just the latest clickbait headlines, it’s easy to see why so many people say it’s still the best investment you can make – even now.

According to the just-released annual report from Gallup, real estate has been voted the best long-term investment for the 12th consecutive year. That’s over a decade of beating out stocks, gold, and bonds as America’s top pick.

And this isn’t new. Real estate usually claims the #1 title. But here’s what’s interesting. This year’s results came in just after a rocky April for the stock and bond markets. It shows that, even as other investments had wild swings, real estate has held its ground. That’s likely because it gains value in a steadier, more predictable way. As Gallup explains:

“Amid volatility in the stock and bond markets in April, Americans’ preference for stocks as the best long-term investment has declined. Gold has gained in appeal, while real estate remains the top choice for the 12th consecutive year.”

That says a lot. Even though things may feel a bit uncertain in today’s economy, real estate can still be a powerful investment.

Yes, home values are rising at a more moderate pace right now. And sure, in some markets, prices may be flat in the year ahead or even dip a little – but that’s just the short-term view. Don’t let that cloud the bigger picture.

Real estate has a proven track record of appreciating over time. That’s the kind of growth you can count on, especially if you plan to live in that home for a long time.

That’s part of why Americans continue to buy into homeownership, even when the headlines may sound a little uncertain. As Sam Williamson, Senior Economist at First American, says:

“A home is more than just a place to live—it’s often a family’s most valuable financial asset and a cornerstone to building long-term wealth.”

Bottom Line

Real estate isn’t about overnight wins. It’s about long-term gains. So, don’t let the uncertainty in a shifting market make you think it’s a bad time to buy.

If you’re feeling unsure, remember: Americans have consistently said real estate is the best long-term investment you can make. And if you’d like more information on why many people believe homeownership is worthwhile, let’s discuss.

Do you think a brand-new home comes with a higher price tag? Think again.

Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is lower than the median price for existing homes (ones that have already been lived in):

You read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed it would be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s market.

Why Are Newly Built Homes Less Expensive Right Now?

1. Builders Are Building Smaller Homes

Builders are aware that buyers are currently struggling with affordability. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below):

As size decreases, the price often follows suit. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them.

2. Builders Are Offering Price Cuts and Incentives

In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5%. That’s because they want to ensure they’re linking the inventory they have before building more.

Additionally, 61% of builders also offered sales incentives, such as helping with closing costs or buying down the mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market.

Your Next Step? Ask Your Agent What’s Available Near You

If you’re buying a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders offering incentives or discounts, and hidden gems that you might not uncover on your own.

Additionally, buying a newly built home typically involves different steps in the process compared to purchasing a previously lived-in house. It’s essential to have an agent who can explain the fine print. You want a professional in your corner to advocate for you, negotiate on your behalf, and ensure your best interests are prioritized.

Bottom Line

You could get a home that’s new, with modern features, at a price that’s lower than some older homes. Let’s talk about what you’re looking for and see if a newly built home is the right fit for you.

If buying a home is on your to-do list, what would stop you from exploring newly built options?

You’ve probably asked yourself lately: Is it even worth trying to buy a home right now?

With high home prices and stubborn mortgage rates, renting can seem like the safer choice right now. Or maybe your only choice. That’s a very real feeling. And perhaps buying today isn’t your best move; it’s not for everyone right away. You should only buy a home when you’re ready and able to do it, and if the timing is right for you.

But here’s the thing you need to know about renting.

While it may feel like a safer bet today – and in some areas might even be less expensive month-to-month than owning – it can really cost you more over time.

In fact, a recent Bank of America survey found that 70% of aspiring homeowners worry about what long-term renting means for their future. And they’re not wrong.

Owning a home may seem way out of reach, but if you make a plan now and steadily work toward it, homeownership comes with serious long-term financial benefits.

Homeownership Builds Wealth Over Time

Buying a home isn’t just about having a place to live – it’s a step toward building your future wealth.

Why? Home prices typically rise over time, which means the longer you wait, the more expensive it is to buy. And even in some markets where home prices are softening today, the overall long-term trend speaks for itself (see graph below):

And as home values rise, so does your equity when you’re a homeowner. That’s the difference between what your home is worth and what you owe. So, with every mortgage payment, that equity grows. Over time, that becomes part of your net worth.

Today, the average homeowner’s net worth is nearly 40X greater than that of a renter. That’s a shocking difference, and the dollars in the visual below don’t lie (see graph below):

And it’s one of the big reasons why Forbes says:

“While renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”

The Biggest Downside of Renting

So, short-term, why does renting feel like a simpler choice? Lower monthly payments, less responsibility, no strings attached. But long-term? It can sting.

For decades, while home prices have been rising, rent has gone up too. And while rent has held rather steady more recently, history shows the overall trend is up and to the right. That makes saving for a home more complicated than ever (see graph below):

That kind of financial uncertainty has a real impact. In the same Bank of America survey, 72% of potential buyers said they worry rising rent could affect their current and long-term finances.

Because rent doesn’t build wealth. It doesn’t come back to you later. It pays your landlord’s mortgage – not yours.

So, whether you rent or own, you’re paying a mortgage. The question is: whose mortgage do you want to pay?

Renting vs. Buying: What Really Matters

Think of it this way. Renting means your money is gone once you pay it. Owning means your payment builds equity – like a savings account you can live in. Sure, buying comes with responsibility. But it also comes with the kind of reward that grows over time. And that’s why you need a solid plan to get there.

As Joel Berner, Senior Economist at Realtor.com, explains:

“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”

Bottom Line

Renting may feel more do-able today. But over time, it could cost you more – without helping you build anything for your future.

If homeownership feels out of reach today, you’re not alone. And the first step toward getting out of the rental trap is to set a plan. Let’s connect, set your specific goals, and explore your options – so you’re ready when the time is right.

A few years ago, homes were selling quickly and receiving multiple offers well above their asking price. It felt like you could name your price and still have buyers lined up at the door.

But today’s housing market is different. Buyers are getting more selective now that inventory has grown. Homes are sitting a little longer. And more sellers are having to cut their prices.

So, how do you still come out on top? It all starts with one thing: pricing your house right from the start. Today, that matters more than ever – and it can make or break your sale.

There’s a Real Price Disconnect Between Buyers and Sellers

A recent survey from Realtor.com shows 81% of home sellers believe they’ll get their asking price or more. However, the actual sales data reveals a growing gap between what sellers expect and what buyers are willing to pay.

An annual report from the National Association of Realtors (NAR) shows 44% of recently sold homes went for less than the asking price. And 1 in 3 sellers had to cut their price at least once before the home sold. It’s a sign that expectations may be a little out of step with today’s reality.

Check out the graph below. It uses data from Redfin to show that asking prices (blue line) are higher than actual sales prices (green line) by a broader and wider margin:

This tells you something important: not all buyers are willing to pay what many sellers are asking. That doesn’t mean you can’t sell for a great price, but it does mean you need to start with a price that reflects what people are willing to pay in today’s market.

What Happens When You Overprice Your House?

Pricing your house high initially may seem like a smart move, as it gives you more room to negotiate. However, the reality is that an overpriced home can linger on the market, deterring potential buyers.

Buyers are smart. And when they see a house that’s been sitting for a while, they start to wonder what’s wrong with it. That can lead to fewer showings, less interest, and eventually, a price cut to re-ignite attention. As Realtor.com explains:

“By getting the right price early on, you can increase the odds buyers will be interested in the home. In turn, this decreases the chances the home will sit on the market for a lengthier timeline, also reducing the odds you’ll need to lower the listing price.”

The longer a house sits on the market, the harder it can be to sell.

You Still Have a Great Opportunity – If You Price Your House Right

To avoid making this mistake, it’s essential to rely on an agent who is familiar with local market conditions when setting your asking price.

Your agent will look at recent local sales, buyer trends, and inventory levels to find that pricing sweet spot for your neighborhood, because it’s going to be different based on where you live.

And here’s something else to keep in mind: Home prices have climbed more than 57% over the past five years. So, even if you price a bit below the number you had your sights set on, you’ll likely still be in an excellent position profit-wise.

With a local real estate agent’s help, you’ll attract more attention, avoid seeing your house sit on the market too long, and maximize your chances of getting a firm offer.

In today’s market, the right price works. As Mike Simonsen, Founder of Altos Research, explains:

“. . . the best properties, well priced are selling quickly in most of the country.”

Bottom Line

The market has changed, but your opportunity to sell remains the same. You need the right pricing plan. Let’s walk through what’s happening with prices in our area and determine what price would help your house sell quickly and for top dollar.