Are Home Prices More Affordable Than 10 Years Ago?!?!

By Philip Kang

Philip Kang is the visionary team leader of the HomeReady Team, based in Orange County, California. Since founding the team, Philip has driven rapid growth year after year, with the team on track to close over $150 million in real estate volume in 2025.

Home prices feel confusing; some say they’re crashing, others say they’re still too high. Based on historical and recent data, home prices have risen, but compared to the money supply, they’ve actually lost ground. Here’s what the numbers are showing:

As of Q2 2025, the average U.S. home price was $410,800. A decade ago, it was $289,100. That’s a solid 30% increase over 10 years.

During the same time, the U.S. money supply grew from $12 trillion to more than $22 trillion, about a 45% jump.

To give you a clearer picture, imagine playing a game of Monopoly where everyone at the table suddenly got 45% more money. Naturally, every property on the board would cost more.

But in the real world, homes only climbed 30%. Since money supply grew faster than home prices, homes haven’t kept up, and right now, homes are worth less compared to the dollars circulating.

Another factor affecting this situation is that prices peaked in late 2022 at $442,600. Now, the average is at $410,800, that’s more than a 5% drop.

What does this mean for you? Rates have stabilized, and most signals suggest they’ll move lower. Inflation is easing, job data is weaker, and we could see borrowing costs come down soon. If that happens, demand will heat back up and prices will follow.

If you’re buying, this is a good time to purchase. Homes are technically “on sale” compared to a couple years ago. You can buy now, and when interest rates go down later, you can refinance your mortgage to save more.

If you’re selling, don’t wait until the last minute. Connect with a trusted real estate professional early. That way, you can time the market, prepare your home, and position yourself for the best outcome.

The headlines may be confusing, but opportunity is here, whether you’re buying or selling.

If you’re unsure of your next step, call or send me a message at (714) 451-4543 or phil@homereadyteam.com. I’d be glad to sit down for a complimentary consultation and walk you through how to position yourself for success.