Home Price Appreciation May Be Picking Up Again

Hello, this is Sang Chul Han with Chicago BDB.

Over the past year, real estate headlines have focused on higher mortgage rates, increasing inventory, and price adjustments in certain markets. As a result, many buyers have wondered, "If I wait a little longer, will home prices finally drop?"

However, recent data suggests that home price appreciation may have already bottomed out and could begin accelerating again.

Home Prices Didn't Fall—Their Rate of Growth Slowed

According to a July 29, 2026, Keeping Current Matters report, national home price appreciation steadily slowed from approximately 7% in mid-2024.

The important distinction is this: home prices did not broadly decline—they simply increased at a slower pace.Recent data now shows early signs that appreciation may be turning upward again.

Of course, a few months of data alone do not confirm a long-term trend. However, several housing indicators are beginning to point in the same direction, making this a development worth watching.

Fewer Housing Markets Are Seeing Price Declines

Among the nation's 300 largest housing markets, approximately 36% were experiencing declining home prices in the middle of last year. That figure has now fallen to about 23%.

In other words, fewer markets are losing value, while more markets are returning to price growth.

Housing economists currently forecast that U.S. home prices will rise by approximately 2.3% in 2026. If that projection proves accurate, home price appreciation will likely need to strengthen during the second half of the year.

Keep a Close Eye on the Midwest

National averages don't tell the whole story—especially in real estate.

Housing markets are highly local, and recent trends show stronger price appreciation returning in parts of the Midwest, where home prices remain relatively affordable and employment fundamentals are strong. Chicago and many of its surrounding suburbs could benefit from these conditions.

In communities such as Naperville, Northbrook, Glenview, and Buffalo Grove, well-maintained homes that are priced appropriately continue to sell quickly because buyer demand remains steady.

At the same time, homes that are overpriced or require significant updates often stay on the market longer and may eventually need price reductions.

That's why broad statements like "Chicago home prices are rising" or "it's a buyer's market" rarely tell the full story. Market conditions vary significantly by neighborhood, school district, price range, and property condition.

What Does This Mean for Buyers?

The recent period of slower appreciation has created opportunities for buyers. In many markets, increased inventory has expanded choices while providing more room to negotiate seller credits or repair concessions.

However, if appreciation begins accelerating again in your target neighborhood, waiting too long may not work in your favor.

Even if mortgage rates decline later this year, rising home prices and increased competition could offset much of the savings, leaving your monthly payment—or total purchase cost—similar to today's levels.

Rather than focusing solely on national housing forecasts, buyers should pay close attention to local market conditions, including:

• Current inventory levels

• Recent comparable sales

• Average days on market

• Frequency of price reductions

These local indicators often provide a much clearer picture than national headlines.

Encouraging News for Sellers

Even during the slowdown in appreciation, most homeowners continued building equity.

According to National Association of Realtors® Chief Economist Lawrence Yun, the typical homeowner is expected to gain approximately $16,000 in home equity this year.

If appreciation continues strengthening, that would certainly be positive news for sellers.

However, it does not mean every home will sell regardless of price.

Today's buyers are comparing condition, value, and pricing much more carefully than they did during the peak seller's market. Homes that are accurately priced from day one—and professionally presented with quality photography and staging—continue to perform the best.

Local Market Data Matters Most

The possibility that home price appreciation is beginning to accelerate again is certainly an important development.

But whether it's the right time to buy or sell depends far more on your local market than national averages.

Even within the Chicago area, market conditions differ widely between the city and suburbs, among school districts, across price ranges, and by property type.

If you're planning to buy, now may be the right time to evaluate today's inventory and negotiating opportunities before competition increases.

If you're considering selling, it's worth understanding your home's current market value and developing the right pricing strategy from the beginning.

If you're planning to buy or sell a home in Chicago or the surrounding Illinois suburbs, I'd be happy to help you analyze recent sales, local competition, and current market trends so you can make the most informed decision.

Thank you.

Chicago BDB

Sang Chul Han

Platinum Partners Realtors

Illinois Licensed Realtor®

License #475.179051

773-717-2227

ChicagoBDB@gmail.com