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.

Our Take on the Seattle & Eastside Market

Here in Seattle and across the Eastside, we’re seeing exactly what the data above describes: normalization, not decline.

Yes, the pace has slowed compared to the frenzy of 2021–2022. That’s healthy. Buyers are more thoughtful. Sellers are pricing more strategically. But well-located, well-presented homes in desirable Eastside neighborhoods are still selling, and they’re still selling at values far above pre-pandemic levels.

What we are not seeing is widespread value erosion. Inventory remains constrained, job growth in the region continues to support housing demand, and homeowners here generally have significant equity cushions. In other words, our market fundamentals are strong. The headlines don’t reflect the nuance on the ground.

Where we do see softness, it’s almost always tied to overpricing, poor presentation, or homes that pushed too far ahead of the market during the pandemic run-up. Homes priced correctly and marketed well continue to perform. That’s the difference between national noise and local reality.

Bottom line for Seattle and the Eastside: this is a market that rewards strategy, timing, and local expertise. It’s not a market to fear. And it’s certainly not a market where values are “crashing.”

If you’re wondering what your home is worth right now, or how current conditions affect your specific neighborhood, that’s where real clarity matters. We’re always happy to walk through it with you, calmly, honestly, and without pressure.

Our Listing Process

With Shane & Anne, our mission is to prioritize our clients in every aspect of the real estate journey. We are committed to providing exceptional service and expertise in the luxury real estate market. Guided by our core values, we strive to build lasting relationships based on trust and mutual respect.

Our Core Values:

• Loyalty: We are unwavering in our commitment to our clients, always putting their needs and interests first.
• Honesty: We operate with the highest level of integrity, providing truthful and transparent communication at every step.
• Confidentiality: We respect our clients' privacy and handle all transactions with the utmost discretion.

We are committed to staying ahead of market trends and continuously enhancing our skills and knowledge to deliver unparalleled results. Our goal is to make the real estate experience as smooth and rewarding as possible, ultimately helping our clients achieve their real estate dreams.