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.
It’s true that a few metros are seeing slight price drops. But don’t let that overshadow this simple truth: home values almost always go up over time. While the housing crash of 2008 is still fresh in many people’s minds, it was the exception – not the rule. The factors that led to that crash, such as risky lending practices, oversupply of homes, and low equity, aren’t present in today’s market.
Today’s real estate environment is much healthier. Lending standards are tighter, inventory is still below average, and most homeowners have significant equity. That means the recent headlines about home price dips aren’t signaling a crash—they’re just part of a more balanced market.
What’s the Five-Year Rule? In real estate, the five-year rule suggests that if you plan to own a home for at least five years, you’ll typically ride out any short-term price declines. Over time, home prices generally trend upward, which means long-term homeowners usually see gains, even if they purchase during a slower market.
Lance Lambert, Co-Founder of ResiClub, puts it this way:
"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? While some large markets are seeing minor price drops—around 2.9% on average—home values in most areas are still climbing. And if you’ve owned your home for more than five years, you’ve likely seen a significant increase in its value.
According to the Federal Housing Finance Agency (FHFA), home prices have risen 55% nationwide over the past five years. Even in the few metros seeing a minor drop, prices are still well above where they were five years ago. Every single state has experienced price growth in that time.
Why It Matters for Buyers and Sellers Whether you're buying or selling, the long-term outlook remains positive. Buyers can take advantage of less competition and greater negotiating power in today’s market, while sellers who’ve owned for years are still sitting on considerable equity.
How Alejandra Paladino Can Help If you're unsure how these trends apply to your situation, Alejandra Paladino, REALTOR® at eXp Realty, is here to help. With her deep market knowledge, digital marketing expertise, and personalized guidance, Alejandra can walk you through current market conditions and help you develop a long-term strategy—whether you’re buying your first home, upgrading, or preparing to sell.
Bottom Line Yes, prices can shift in the short term. But history shows that home values almost always go up over five years. If you're looking to make a move and want expert guidance to help you navigate this evolving market with confidence, Alejandra Paladino is just a call or click away.
Alejandra Paladino – Top Real Estate Agent
?? 480.382.0519
?? alejandra@azalejandra.com
?? zoomtoarizona.com
?? Search homes at azalejandra.com
#ArizonaRealEstate #AZHomesForSale #HomeBuyingTips #AZRealtor #QueenCreekRealEstate #GilbertAZ #PhoenixHomes #LongTermInvestment