Overview
- Year-over-year price growth continues its downward trend, with growth slowing to just 1.0% in November 2025.
- Despite a seasonal cooling in national momentum, Northeast and Midwest hubs including Newark, NJ; Chicago, IL; and Milwaukee, WI saw annual price growth gain traction in November.
- Major metros areas in Florida and Texas led the nation in annual market depreciation.
National home price growth
November 2025 data
Source: Cotality
Affordability meter
Source: Cotality
Insights from Chief Economist Dr. Selma Hepp
As 2025 concluded, the housing market transitioned from a year of moderation to a 2026 landscape defined by cautious optimism. While the broader market stabilizes, Cotality experts are seeing the immediate impact of shifting federal priorities. Specifically, Washington, D.C. has surged to the second-fastest-depreciating market—up from sixth just a month ago—likely reflecting the early footprints of DOGE initiatives.
"Looking ahead to 2026, regional differences will remain pronounced, with demand favoring areas that offer both economic opportunity and relative affordability," said Cotality’s Chief Economist Dr. Selma Hepp.
While price growth hit a 14-year low in late 2025, Cotality experts anticipate 2026 will bring a fresh wave of activity, especially if mortgage rates continue to ease. Although home price growth is likely to remain at the low end of the long-term average of 4% to 5%, the upcoming spring buying season should provide the improved affordability and wider inventory needed to re-engage sidelined buyers who have been waiting for the market to find its footing.
As the market enters 2026, inventory levels and mortgage rate trends will play pivotal roles in shaping the landscape. A drop in rates could unleash pent-up demand, but with supply still constrained in many regions, buyers may face competitive conditions, especially in desirable metros.
The expectation for the upcoming spring season is a seasonal uptick, driven by both returning buyers and those who delayed purchases during the previous year's slowdown. Ultimately, 2026 is poised to be a year where adaptability and local market knowledge will be key for both buyers and sellers, but buyers should be seeing more opportunities than in recent years.
"If mortgage rates decline as expected, we could see renewed momentum in the spring, spurring increased competition among buyers and potentially driving a re-acceleration of price gains in markets with limited inventory," Hepp noted.
-Dr. Selma Hepp
Cotality’s Chief Economist
Top 10 hottest markets
Source: Cotality
Top 10 coolest markets
Source: Cotality
Which areas are affordable?
Tracking the top 5 highest and lowest U.S. median sales prices
Source: Cotality Listing Trends data
Markets to watch
Tracking markets with a very high risk of price decline in the top 100 CBSAs
Source: Cotality
High-risk market home price trends
Source: Cotality
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