According to Cotality’s October 2026 U.S. home price insights, national single-family home price growth reaccelerated modestly in August, rising 1.8% year-over-year compared to 1.6% in July. This marks the fifth consecutive month of reacceleration in home price growth. The housing market continues to soften, as potential homebuyers pull back in September’s pending home sales.
According to Cotality’s Chief Economist, Dr. Selma Hepp, the core trend shaping the market is the shift away from the once-booming Sunbelt and West Coast cities toward more affordable, inventory-constrained regions in the Midwest and Northeast.
“The national housing market shows a clear split between short-term sensitivity to interest rates and long-term supply shortages,” said Hepp. “High mortgage rates continue to suppress transaction volumes, but severe inventory constraints in the Midwest and Northeast are insulating home prices from broader declines and fueling localized appreciation.”
