Are home prices still rising, and what does it mean for your equity?

Are home prices still going up?

Yes, just slowly. The typical home that sold in the U.S. in September went for $417,500, up 1.3% from a year earlier. Sales picked up a little from August, and there were 4.8 months of homes for sale. That's more choice than buyers have had in years, but still short of the roughly six months most people call a balanced market.

So prices aren't falling across the country. They're growing more slowly than the big jumps of a few years ago.

How are prices doing where we lend?

It depends a lot on the neighborhood. In Southern California, prices kept climbing in the third quarter:

Area	Median single-family price	Change in a year
Orange County (Anaheim–Santa Ana–Irvine)	$1,470,000	+5.0%
San Diego–Carlsbad	$1,075,000	+6.5%
Los Angeles–Long Beach–Glendale	$958,500	+0.5%

Prices rose in 78% of the metro areas NAR tracks, and NAR says nearly all Florida markets showed gains this quarter after a year of declines in many of them.

Why are first-time buyers waiting until 40?

The typical first-time buyer is now 40 years old, tied for the oldest on record, and first-time buyers made up only 22% of purchases. Higher prices, rent, and saving for a down payment all add up. Many buyers don't realize that "first-time buyer" programs often count anyone who hasn't owned a home in the past three years, and that down payment help exists in all four of our states.

What does this mean for you?

If you own your home: Your equity has probably grown, even with slower price gains. Homeowners hold about $11.7 trillion they could borrow against while keeping 20% equity. If you have a low first-mortgage rate, a HELOC can let you use some of that equity without giving up the rate. See how much a HELOC could unlock, or check your Life Rate if you're also carrying high-interest debt.

If you're buying: More homes for sale means more room to negotiate on price, repairs, or closing costs. Start with how much house you can afford and down payment help in CA, TX, FL, and CO.

If you're 62 or older: Rising home values raise the amount a reverse mortgage can provide, up to the HUD limit. If you'd like to keep a low-rate first mortgage, there are reverse mortgage options that keep it. Our free reverse mortgage calculator gives you a quick estimate.

If you invest in rentals: Equity in a rental you already own can fund the next one. A DSCR cash-out refinance qualifies on the property's rent instead of your tax returns. Take the 2-minute investor quiz to see which loans fit.

Our take

I've been doing this for more than 25 years, and the headlines make it sound like the market is either booming or crashing. Right now it's neither. Prices are inching up, buyers have more choices, and most of my clients who've owned for 10 years or more are sitting on more equity than they realize. You don't need to time the market. You need to know your own numbers: what your home is worth, what you owe, and what that equity could do for you. That's a 15-minute conversation, and it's free.

What to watch next

• 2027 loan limits: The new conforming loan limit and the 2027 HECM reverse mortgage limit are usually announced in late November or December. Higher limits mean more people can use a standard loan or get more from a reverse mortgage.
• October home sales: NAR's next existing-home sales report comes out later this month. We'll break it down in the first edition after it's released.