Most metros still saw gains, but cooling growth shifted power slightly toward buyers
Home prices in most US metros continued to edge higher in the first quarter, even as the broader housing market drifted into what one analyst described as a “state of hibernation.”
New data from the National Association of Realtors (NAR) showed that prices increased year over year in 167 of 235 metro areas - about 71% of the markets tracked - while 16 logged double digit gains.
The national median existing single family price rose 0.5% to $404,300, extending a multi year run of equity gains even as affordability remained stretched.
“The national housing market has entered a state of hibernation as price growth narrows across all major reporting standards,” Bankrate financial analyst Stephen Kates, CFP, said.
Kates said the cooling trend lined up with other benchmarks. “This cooling is mirrored by data from the Federal Housing Finance Agency, which reported a 1.7% annual gain, and the S&P CoreLogic Case-Shiller Home Price Index, which recorded just a 0.7% increase in its most recent report covering data through February,” he said.
Mark Hamrick of Bankrate highlights that flat price growth signals a turning point, with more markets declining and homeowners losing ground against inflation.
— Mortgage Professional America Magazine (@MPAMagazineUS) April 28, 2026
Read more on what this means for borrowers and the market.https://t.co/7ke5bvCJQy
Regional divides deepen
NAR’s figures underscore a familiar split: strength in the Northeast and Midwest, softness in parts of the South and West.
“Geographic divergence has become the defining characteristic of the 2026 market, with the industrial heartland and Northeast flourishing while the West faces a valuation retreat,” Kates said.
“The NAR reports that home prices in the Northeast rose by 4.9% and the Midwest by 3.6%, while the West saw prices decline by 2.9%.”
Seven percent of markets still managed double digit gains.
“Seven percent of markets still managed double digit gains, led by a 12.0% jump in the Akron, Ohio, metro area,” Kates said.
“Anchorage, Alaska, and Albany, New York, rounded out the top three.”
Lawrence Yun, NAR’s chief economist, stressed that most owners still saw their balance sheets improve.
“Home prices continued to increase in many markets, boosting housing wealth for most homeowners,” Yun said.
“Gains were particularly solid across metro areas in the Northeast, where inventory shortages persist, and in the Midwest, where home prices remain relatively affordable.”
Affordability thawed, but only slightly
The first quarter brought modest relief on payments as mortgage rates eased from 2025 peaks and prices flattened at the national level.
“For the prospective buyer, the math of homeownership is finally moving in a more favorable direction as affordability conditions begin to thaw,” Kates said.
“The monthly mortgage payment on a typical existing single family home dropped to $1,979, representing a $78 decrease from last quarter. Typical families are now spending 21.5% of their income on mortgage payments, down from over 24% just one year ago.”
Yun noted that rates, while higher than earlier this year, remain below last year’s levels and continue to pull some borrowers back into the market.
“Lower mortgage rates will allow more potential buyers to qualify for and obtain a mortgage,” he said.
NAR also reported that about 27% of markets saw year over year price declines, up from 17% a year earlier, as formerly overheated “boomtown” markets reset.
Kates said this shift created “a rare window of leverage for buyers that has been missing for most of the past decade,” particularly in parts of the South and West where supply improved and local economies still added jobs.
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