The Truth Behind “Flat” Home Prices — And What It Means for You

Are Home Prices Really Flat? Here’s What’s Actually Happening

If you’ve been following real estate news lately, you’ve probably seen headlines saying home prices are flat. And at first glance, that sounds simple enough. But here’s the truth: the reality isn’t that straightforward.

In most places, prices aren’t flat at all.

What the Data Really Shows

While prices have clearly moderated from the rapid, unsustainable climb of 2020–2022, what’s happening now depends heavily on where you live.

According to recent data from ResiClub and Zillow, when you look at the 50 largest metros, the story splits almost perfectly in half:

• Half of the markets are still seeing prices inch higher.

• The other half are seeing slight declines.

So when national headlines say “flat,” they’re really averaging together two very different realities — one of ongoing growth and one of modest corrections.

One key factor driving this divide? Inventory.

The Joint Center for Housing Studies (JCHS) at Harvard University explains:

“. . . price trends are beginning to diverge in markets across the country. Prices are declining in a growing number of markets where inventories have soared while they continue to climb in markets where for-sale inventories remain tight.”

In other words, where inventory rises, prices soften. Where it’s still limited, prices hold firm—or even climb.

Perspective Matters

Even in areas where prices are dipping, it’s important to keep perspective. Nationally, home prices rose about 50% over the past five years.

That means a small correction in some overheated markets doesn’t erase those long-term gains. Most homeowners are still far ahead compared to where they were just a few years ago.

And according to housing experts, there’s no indication of a national price drop on the horizon. Instead, what we’re seeing now is a healthy market recalibration that depends on local conditions.

If You’re Buying...

Knowing your local trend is key to making smart moves:

• In markets where prices are still inching up, waiting could cost you.

• In markets where prices are easing, you may have more room to negotiate—on price, repairs, or closing costs.

Having the right local insights can help you decide when to act and how to position your offer.

If You’re Selling...

Pricing strategy is everything right now.

• In markets with rising prices, sellers may still have the upper hand.

• In markets where prices are softening, sellers who price right from the start—and stay flexible—will attract serious buyers faster.

Homes that are priced accurately for their local market are still selling, and often within days. The key is listening to your agent’s advice and staying realistic about today’s buyers.

The Real Story Is Local

National numbers can be helpful for big-picture context, but they rarely tell you what’s happening in your zip code.

As Anthony Smith, Senior Economist at Realtor.com, puts it:

“While national prices continued to climb, local market conditions have become increasingly fragmented… This regional divide is expected to continue influencing price dynamics and sales activity as the fall season gets underway.”

That’s why the smartest move—whether you’re buying or selling—is to lean on a local agent who knows your neighborhood inside and out. They’ll help you understand exactly what’s happening where you are and guide you with data-driven advice.

Bottom Line

Headlines calling home prices “flat” might grab attention—but they don’t tell the full story.

Real estate is local, always has been, and always will be.

Has anyone walked you through what’s really happening in your market?
If you want the real story about prices in your area, connect with a trusted local agent today.