What happened to home prices in Q1 2026? 

Home prices were up in 167 of 230 metro markets during the first quarter of 2026, a report released today by the National Association of REALTORS® (NAR) said.

The national median price for single-family existing homes was $404,300, up 0.5% from the previous year, the report said.

While home prices rose in three of the four major regions the NAR report looks at, it did see a slight drop in the West.

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

Where did home prices change the most in Q1 2026?

On a region-by-region basis, the U.S. housing market saw these changes in median home prices: 

“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.”

Which metros saw the largest changes in home prices? 

The top 10 metro areas with the largest year-over-year increases in median home prices were in the Midwest and Northeast, the NAR report said. The metro areas with the biggest changes were: 

The NAR report also detailed the 10 most expensive metro markets for single-family homes. Of the 10 most expensive metro markets, eight of them for the first quarter of 2026 were in California. Topping the list was San Jose-Sunnyvale-Santa Clara, California, with an average home price of $2,030,000, which is up 0.5% from last year.

How about housing affordability in Q1 2026? 

While median existing single-family home prices have increased 0.5% from the same time the previous year, they were down slightly from 1.2% in the fourth quarter of 2025.

The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,979*. This was down $78 from the previous quarter and down $140 from the same time last year.

Families typically spend 21.5% of their income on mortgage payments, down 1.4% from the previous quarter at the end of 2025 and down 2.8% from a year ago.

First-time homebuyers did see a drop in prices for starter homes compared to the fourth quarter of 2025, as well as a decrease compared to the same time the previous year. The monthly mortgage for a typical starter home valued at $343,700 with a 10% down payment in the first quarter of 2026 was $1,934. This monthly mortgage was down $76 from last quarter but up $135 from a year ago.

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*National average mortgage payment is provided for informational use only and is not an advertised loan term.