10 Red Flags Your Home Value May Be Declining
Home values in the U.S. increased by around 1.7% in 2025, according to Redfin, totaling approximately $7,400 more than 2024 in terms of median sale prices. For home sellers, that’s good news. However, you shouldn’t assume that the trend of rising home values ensures your home will increase in value.
There are a variety of factors — some within your control, some that are not — that could signal your home won’t be worth as much soon. Keep reading to learn the signs that your house is losing value.
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1. Your Home Is Dated Compared With Nearby Properties
Your house might not fetch top dollar if you haven’t bothered to update it. “Are your kitchen and bathrooms from the ‘Brady Bunch’ era while most of the recent sales in your neighborhood had the smooth, quartz countertops and stainless-steel appliances?” said Conor MacEvilly, a Seattle realtor. “Sure, pink tile bathrooms will one day be chic again — for a few fleeting months — but, in the meantime, dated means a potentially lower home value.”
Updating your home will likely help you sell it for more. However, that amount might not be enough to recoup the cost of the updates. “So, if your kitchen and bathrooms are dated but functional, then the net proceeds from the sale of your home might be the same whether you remodel it or not,” MacEvilly said.
2. You’re Not Staying on Top of Home Maintenance
Failing to keep up with maintenance and repairs on your home is a sure sign that it will start losing value as problems accumulate, said content strategy expert Daniela Andreevska. This includes mold and insect infestation problems, which can compromise the value of your property, she said.
Build an emergency fund to pay for home repairs when they are needed. Otherwise, if you don’t spend the money to keep your house maintained, you could have trouble selling your home.
3. You’re Neglecting Curb Appeal
If you’re trying to figure out how to increase your home value, start by paying attention to how it looks to potential buyers. Your home won’t make a good first impression if you haven’t bothered to improve its curb appeal. “Simple upgrades such as new landscape and fresh coats of paint can help boost your home’s value,” said Sacha Ferrandi, founder and principal of real estate lending company Source Capital.
4. Inventory in the Housing Market Rises
The value of your home is tied to the housing market in your area, and a crowded housing market could spell trouble for your home’s value. “When inventory in the housing market rises, the value of your home has high potential to decrease,” said Bryan Bowles, founder and CEO of real estate technology platform Transactly. “Competition between sellers for buyers will increase and force prices down.”
You’ll likely have to go the extra mile to ensure your home stands out from comparable properties to avoid having to lower your price to get a buyer.
5. Nearby Homes Are Selling for Low Prices
Smart buyers will check the list prices and sale prices of homes to determine what a fair market price is in your neighborhood. “If your neighbors recently sold a house for a low price, buyers will often expect your house to also be priced low,” said Ben Mizes, CEO and co-founder of Clever Real Estate.
If you find out what sets your house apart from the lower-priced house, you might be able to justify your property’s higher price if you’re selling your home.
6. Interest Rates Rise
When mortgage interest rates rise, homebuyer demand tends to drop, said Ryan Fitzgerald, owner of Raleigh Realty in Raleigh and uphomes in Charlotte, North Carolina. This could have a big impact on your home’s value, he said. As interest rates increase, the number of people who can afford your home at its current price decreases because the cost of getting a mortgage to buy the home will rise.
7. Your Neighborhood Is Hit by an Economic Slowdown
Your home could lose value if your neighborhood falls on hard times. “One definite sign is that businesses are moving away from your neighborhood,” Andreevska said. “This means that there will be fewer jobs, and fewer people will be willing to live in your area, so real estate prices will go down.”
If you see that one business has closed or left your neighborhood, don’t wait for more to follow suit before putting your house on the market. Act quickly if you’re thinking about selling.
8. There Are Foreclosures in Your Neighborhood
Your home value could drop if houses in your neighborhood are in foreclosure. “Even if you are not at the risk of foreclosure, buyers will believe you are if too many houses around yours have been repossessed by banks,” Andreevska said. “Buyers will not be willing to pay market value for your home, as they would think that you may go into foreclosure in a couple of months, after which they will be able to buy your home for much cheaper.”
9. Crime Rates Rise
An increase in the crime rate in your neighborhood or neighbors with a criminal record could significantly decrease the value of your home, said Ferrandi. “If there are ongoing signs of disruptive behavior and activity, your neighborhood’s overall value could decrease, in turn decreasing the value of each home itself,” he said. And businesses will shy away from opening up in areas with high crime rates, which also can hurt home values.
10. Property Tax Rates Rise
If your local or state government raises property tax rates, it could hurt the value of your home, De Medici said. Potential buyers might be scared off by the higher tax rates, which makes it hard to sell your home without dropping the price.
Laura Beck contributed to the reporting for this article.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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