Cotality reports national home price insights
Heading into the spring homebuying season, annual price appreciation slowed to a marginal 0.5% in February 2026. This signals that the U.S. housing market has collided with an affordability ceiling. While this price growth indicates a market at a standstill, it hides a massive internal rebalancing as different regions and property types move in opposite directions. The current housing market is defined by a sharp divide in performance, both nationally and within specific regions.
“These diverse trends indicate an ongoing process of price discovery—one where sales and comparisons remain limited—and underscore a market that is rebalancing locally rather than correcting nationally,” said Cotality Chief Economist Dr. Selma Hepp.
Hepp added that the decrease in mortgage rates before the spring buying season raised hopes for a rebound in home prices and sales in 2026, but that the recent surge in rates has shifted those hopes to a broader recovery in 2026.
