Cotality reports softer home price growth
According to the S&P Cotality Case-Shiller Home Price Index, the leading measure of U.S. residential real estate prices, the beginning of 2026 is off to a colder start than predicted. Home price growth in January dipped to 0.9%, a 0.11% decrease for the month, a significant drop from the typical 0.03% seasonal dip reported in years before.
“We are in a period of low sales and price growth that mirrors the disconnect between incomes and home prices seen during 20th century recessions,” said Thom Malone, Principal Economist at Cotality. “This time, however, the dynamics are reversed: rather than an economic collapse, a housing surge is waiting for the rest of the economy to catch up. While the 2026 spring homebuying season may spark some momentum, the most likely outcome is modest price growth as buyers and sellers remain at a standoff.”
Graphic Credit: Cotality
