Home Prices Are Still Rising in 71% of Markets Despite Slowdown in West

Home prices increased annually in 71% of U.S. metro markets last quarter, down slightly compared to the end of 2025, as the West continued to lag behind. 

Median sales prices for existing single-family homes rose year-over-year in 167 out of the 235 of the metros tracked by the National Association of Realtors®, which released its latest quarterly report on Tuesday. Prices fell in the remaining 68 markets.

For comparison, in the fourth quarter of last year, 73% of the metros analyzed by NAR saw annual price gains, suggesting that price weakness is slowly spreading

However, from January through March 2026, 7% of metros (16 out of 235) recorded double-digit price increases, up from 5% last quarter. It reflects the growing regional divide in the housing market, with the Northeast and Midwest running hot, while the South and West lag behind.

"Home prices continued to increase in many markets, boosting housing wealth for most homeowners,” said NAR Chief Economist Lawrence Yun. "Gains were particularly solid across metro areas in the Northeast, where inventory shortages persist, and in the Midwest, where home prices remain relatively affordable. However, the expensive West region did not see an increase in sales."

The national median single-family existing-home price edged up 0.5% year over year to $404,300, reflecting a pullback from the previous quarter's 1.2% annual growth rate.  

At the regional level, the inventory-starved Northeast saw the biggest annual price increase, with the median home price rising 4.9% to $506,500.

The Midwest came in second place, with median prices increasing 3.6% to $308,100, followed by the South, where the median settled at $362,300, representing a slight uptick of just 0.2%. 

Meanwhile, typical prices for existing homes in the West dropped 2.9% compared to a year ago, coming in at $607,600 last quarter.

Among the tracked metros, Akron, OH, experienced the steepest existing home price increase, at 12%, followed by Anchorage, AK (10.4%), and Albany, NY (9.3%).

"The condominium market, which weakened sharply last year, is showing signs of stabilization and, in some metro areas, even outperforming the single-family market in terms of price gains," Yun said. “Improved affordability is drawing buyers back to the condo market." 

Markets that saw the largest home price declines in Q1 included Decatur, IL (-13.8%), Farmington, NM (-10.9%), and St. Croix, Virgin Islands (-10.4%).

Typical monthly payments for homeowners

Nationally, the typical monthly mortgage payment for a home purchased in the third quarter would be $1,979, assuming a down payment of 20%, according to the NAR report.

That median monthly payment is down $78 from the previous quarter, and down $140 from a year ago.

"Even though mortgage rates are higher than earlier this year, rates remain comfortably below last year’s levels," said Yun. "Lower mortgage rates will allow more potential buyers to qualify for and obtain a mortgage."

The typical family that purchased a home last quarter was spending 21.5% of their income on mortgage payments, down from 22.9% at the end of 2025 and down from 24.3% year over year.

For first-time buyers, the typical mortgage payment on a starter home was $2,146, taking NAR's assumption of a home valued at $362,800 with a 10% down payment.

First-time buyers were spending 32.5% of their income on a monthly mortgage payment of $1,943 for a typical starter home value at $343,700 with a 10% down payment, down from 34.6% a year ago.