Why a Small Market Cool-Down Isn’t Hurting Your Home’s Value

Home Price Headlines Can Be Misleading

If you’ve seen the latest headlines about home prices “dropping,” it’s natural to wonder what that means for your own home’s value. The truth? Even in areas where prices have ticked down slightly, most homeowners are still miles ahead — and that’s because of home equity.

The Relationship Between Prices and Equity

Your home’s equity grows and shifts alongside market prices.

• When prices rise, equity climbs.

• When prices cool, equity growth simply slows — but rarely disappears.

So even if your local market has seen small dips, years of appreciation have likely positioned you far ahead.

According to the Federal Housing Finance Agency (FHFA), every single U.S. state has experienced home price growth over the last five years. That means homeowners everywhere — from coastal communities to suburban enclaves — are sitting on substantially more equity than they had before the pandemic.

Here in Ventura County and the Conejo Valley, that growth has been particularly strong. From Westlake Village to Thousand Oaks, Calabasas, and Lake Sherwood, prices surged between 2020 and 2023 as inventory hit record lows and demand soared. Even now, with more homes available, the majority of homeowners remain in enviable positions.

Perspective from the Experts

According to Jake Krimmel, Senior Economist at Realtor.com,

“The slight recent declines in aggregate value and total home equity are not cause for concern . . . Although the market is coming into better balance, large price declines nationally are extremely unlikely in the near term.”

That’s good news for local homeowners. What we’re seeing isn’t a downturn — it’s a rebalancing after years of rapid, unsustainable growth.

Putting It All into Perspective

After the record-setting surge of 2020 and 2021, a little cooling was inevitable. Back then, bidding wars were the norm, and inventory was at historic lows. Prices — and homeowner equity — skyrocketed.

Now, as inventory has normalized, price growth has moderated, but that doesn’t mean you’ve lost ground.
According to Zillow, national home prices have climbed 45% since March 2020, while even the “cooling” metros have seen only about a 4% dip from their peak.

In short, even if prices adjusted a few points, your equity is still strong — and that’s the real indicator of long-term wealth and opportunity.

Local Market Snapshot

Across Westlake Village, Thousand Oaks, Oak Park, and Calabasas, homes that were worth $1 million in 2020 are often valued between $1.3M and $1.45M today — even with minor price fluctuations in the past year.

That kind of appreciation creates financial flexibility:

• Downsize and use your equity to buy your next home with little or no mortgage.

• Invest in a second property or rental.

• Or simply enjoy the security of knowing your largest asset is working for you.

The Bottom Line

Even with small price adjustments, most homeowners are sitting on near-record equity. This isn’t a downturn — it’s a healthy reset that gives both buyers and sellers room to move again.

Your home’s equity remains one of your most powerful financial tools. The key is knowing how and when to use it strategically.

Thinking about what your equity means for your next move?
At Avant ONE Real Estate, we help homeowners in Westlake Village, Thousand Oaks, Oak Park, Calabasas, and Lake Sherwood turn equity into opportunity — with expert guidance, full-market exposure, and a client-first strategy every step of the way.

Whether you’re selling, downsizing, or investing, we’ll help you understand your true home value and make the most of it — with less stress and more strategy.

📞 Call or text Teri Pacitto at 747.269.1190 to start a confidential equity review today.
Because at Avant ONE Real Estate, we do real estate differently — and always with your best interests first.