National median hits $395,000 as inventory expands and buyers focus on standout listings
The national median home sale price reached $395,000 in August, a 2.1% year-over-year gain, even as sales volume declined and the number of available homes continued to expand, according to Homes.com's national housing market report.
Home sales dropped 4.3% from a year earlier, while available inventory grew 5.4% over the same period.
The combination signals a market where demand remains strong enough to sustain prices, but where buyers are exercising more discipline in what they choose to pursue.
"Today's housing market is sending a clear message: buyers remain in the market, but they're becoming choosier," said Brad Case, chief residential economist at Homes.com.
"That pattern suggests that demand remains sufficient to support home prices, but buyers appear to be increasingly selective about the homes they choose to purchase."
Regional gaps widen as Midwest holds firm
Of the nation's 40 largest housing markets, 28 posted year-over-year median price increases in August.
Pittsburgh and Cleveland continued to outperform, with relative affordability keeping buyer activity firm in both cities.
Austin, Texas, and Raleigh, North Carolina, were among the markets that recorded year-over-year declines, as above-average inventory levels shifted negotiating leverage toward buyers in those Sun Belt and Southeast markets.
Those geographic gaps have real consequences for brokers walking clients through purchase decisions. Elevated mortgage rates have continued to weigh on affordability and market turnover, making local supply-and-demand conditions more decisive than they have been in years.
The average rate on a 30-year fixed-rate mortgage climbed to 6.95% for the week ending September 17, reaching its highest point since January 2025 and extending a streak of weekly increases to four consecutive weeks, according to Freddie Mac's Primary Mortgage Market Survey (PMMS).
Melissa Cohn, regional vice president at William Raveis Mortgage, told Mortgage Professional America earlier this year that the trajectory of rates will remain the market's central variable.
"Obviously, where interest rates go will have a lot to do with where the real estate market goes," she said.
Condos slip as single-family holds its ground
Performance diverged sharply across property types in August. Single-family homes posted a 1.3% year-over-year price gain to a median of $400,000, while condo prices climbed 1.9% to $349,087 and townhome prices held flat at $360,000.
Sales declined across all three segments — 3.8% for single-family homes, 4.6% for townhomes, and 8.8% for condominiums.
The condo pullback was the steepest of any category and came with an 8.8% drop in transaction volume, a signal worth tracking for brokers whose clients tend to target that segment as a lower-cost entry point.
Inventory expanded 5.8% for single-family homes, 8.3% for townhomes, and 1.8% for condominiums.
If buyers continue absorbing the most attractive listings at a steady pace while remaining selective about others, Homes.com's August analysis suggests available supply could stabilize even without a meaningful uptick in total transactions, keeping price appreciation modest but positive as 2026 enters its final quarter.
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