Home Prices Gain 1.7% as Growth Slows Nationally
Cotality reports national home prices rose 1.7% year over year in September 2026 but fell 0.3% from August.
Updated on Nov. 4, 2026 in Residential
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Cotality reported national home-price growth of 1.7% year over year in September 2026, while prices dipped 0.3% from August. Appreciation strengthened in about half of U.S. metros and weakened in the other half.
Why it matters
The monthly decline was the largest since 2022, and September marked the third consecutive September without monthly home-price growth. High mortgage rates cooled summer demand, softening prices across the country.
Cotality's September index recorded 1.7% annual growth and a 0.3% monthly decline, compared with a typical 0.2% August-to-September rise, with the national median at $429,500. The source does not explain how the decline will evolve in coming months.
The players
Cotality
Cotality is a real estate data and analytics company that publishes national home-price indexes tracking appreciation across U.S. metros.
The details
Annual growth was driven by strong results in Northeastern and Great Lakes states, while weakness in the West and South offset those gains. Illinois led the nation with a 6.9% increase in home prices.
Timeline
September 2026: National home-price growth rose 1.7% year over year.
August to September 2026: Home prices dipped 0.3% month over month.
2027: Elevated mortgage rates are expected to limit home-buying opportunities.
Culture Shift
Cotality's index series shows national appreciation slowing as elevated mortgage rates cool demand, with the September decline the largest monthly drop since 2022. The projected 0.9% growth through September 2027 would mark a further deceleration from the current 1.7% annual pace.
Buyers face elevated mortgage rates that are expected to limit home-buying opportunities in 2027, while softer prices in parts of the West and South may improve bargaining power. Homeowners in slower-appreciating markets may see more modest equity gains than in prior years.
The takeaway
Prices are still rising on an annual basis but are flattening, so buyers in softening markets may find more room to negotiate. Those planning a purchase should weigh current mortgage rates against projected price growth.
Further reading
Explore more on Residential real estate trends shaping home values across the country.
Source note: This article includes information reported by Chicago Agent Magazine.
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