Hearing that home prices are starting to dip? If the headlines have you second-guessing your plans, let’s take a step back. Here’s what’s really going on—and what you should keep in mind before making any big decisions.

 

It’s true—some metro areas are seeing small price dips right now. But don’t let that distract you from the bigger picture: home values almost always rise over time (just check out the graph below!).

 

 

A lot of people think back to the 2008 housing crash—but that was a unique situation, not the norm. It hadn’t happened before, and it hasn’t happened since. Back then, things were totally different: super loose lending standards, hardly any homeowner equity, and way too many homes on the market. Today’s housing market just isn’t built the same. So when you see headlines about prices slowing down or dipping a bit, it doesn’t mean another crash is around the corner.

 

This helps show why those short-term dips aren’t usually a big deal in the long run.

 

You’ve probably heard of the five-year rule in real estate. It basically means that if you plan to stay in your home for at least five years, those short-term price dips aren’t likely to affect you much. That’s because home values tend to rise over time—so even if things dip for a bit, they usually bounce back (and then some) in the long run.

 

Just ask Lance Lambert, Co-Founder of ResiClub—he puts it like this:

 

“. . . 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.”

 

Here’s another thing that might ease your mind: most housing markets are still seeing prices go up—just not as quickly as they did a few years back.

 

In some of the bigger metro areas where prices are cooling a bit (those red bars in the graph below), the average dip is only around -2.9% since April 2024. That’s a far cry from the kind of drop we saw back in 2008.

 

And if you check out the graph below, you’ll see that in most of those markets, prices are still way up compared to five years ago (see those blue bars?). So if someone’s owned their home for a few years, they’re likely still in a really good spot.

 

 

Over the past five years, home prices have jumped by an incredible 55%, according to the FHFA. So, a small dip in the short term really isn’t a big hit. Even if prices in your area are down around 2%, you’re still way ahead overall.

 

And if you zoom in on those 5-year gains using data from the FHFA, you’ll see something pretty reassuring—home values have gone up in every single state over the past five years (check out the map below!).

 

 

That’s why it’s best not to get too caught up in what’s happening this month—or even this year. If you’re planning to stick around for a while (like most homeowners do), chances are your home’s value will keep growing over time.

 

Sure, prices can move around in the short term. But if history’s any guide, home values almost always trend up—especially if you’re in the home for at least five years. So whether you’re thinking about buying or selling, keep the five-year rule in mind and focus on the bigger picture.

 

When you picture your life five years from now, can you see yourself settling into a place you own?

 

Let’s chat and figure out how to make that happen.