If you’ve seen the headlines lately, you’ve probably noticed more talk about home prices “cooling” or “pulling back.” Naturally, that raises questions for many homeowners about what this means for their property’s value - particularly in coastal markets like Watch Hill, Weekapaug, and Avondale, where real estate values tend to move differently than national trends.

Here’s the truth: even with modest price adjustments, most homeowners in our region are still well ahead - thanks to the strength of long-term equity growth.

Understanding the Connection Between Prices and Equity

Home equity moves in step with prices. When values rise, equity builds. When they level off, that growth simply moderates - it doesn’t disappear.

After the historic price surges of 2020 and 2021, a period of moderation was inevitable. Back then, with record-low inventory, buyers competed fiercely for limited listings, driving home prices (and equity) to unprecedented levels.

Now, as more homes come to market, price growth has eased - but it’s a sign of a market finding balance, not decline.

Putting It in Perspective

According to Zillow, home prices nationwide have risen roughly 45% since March 2020. Even in metros where prices have softened, the average dip is only about 4% - barely a blip when viewed against five years of appreciation (see chart below).

Closer to home, Watch Hill real estate and Weekapaug real estate continue to show long-term resilience. Buyers still value our coastline, our privacy, and the character of these neighborhoods. That sustained demand keeps property values strong - and homeowners’ equity intact.

Why This Matters

Equity is more than just a number - it’s your financial cushion and one of the best indicators of long-term wealth. Even if prices fluctuate slightly, years of appreciation have positioned most owners solidly ahead.

As Realtor.com’s Jake Krimmel recently noted, “Large price declines nationally are extremely unlikely in the near term.”

Bottom Line

Whether you’re considering selling, refinancing, or just keeping an eye on your home’s value, the data shows you’re likely in an excellent position.

If you’d like to understand what your home is truly worth today - or how much equity you’ve built - please don’t hesitate to reach out. I’m always happy to discuss the market, share data specific to your neighborhood, or just talk through where we see things heading next.

In this market, knowledge is power - and I’m here to help you make the most of it.

Geb Masterson, Broker Associate with William Pitt Sotheby's International Realty, cell/text: 714.473.8530