What happened to home prices in Q3 2026?

Potential homebuyers were looking for and buying homes even as prices went up in more than three-quarters of the nation's housing metro markets during the third 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 $432,900, up 1.7% from the previous year, the report said.

“Even with affordability challenges causing the housing market to stagnate, home prices continue to set record highs in most parts of the country,” NAR Chief Economist Lawrence Yun said. “Homeowners are the beneficiaries of the price gains. Over the past seven years, the average house has appreciated by $146,000.”

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.

Where did home prices change the most in the third quarter of 2026?

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

• Prices increased 4% in the Northeast to $561,500.

• Home prices were up 3.6% in the Midwest to $342,500.
• The South saw a 1% increase in home prices to $374,900.

• The West saw a slight drop of 0.6% in home prices to $629,000.

“Throughout the last year, home prices declined in many Florida markets. This quarter, however, homes in nearly all Florida markets are showing price gains,” Yun said. “In a similar vein, price declines in other markets may also be brief if the local job market and economy are solid.”

The NAR's chief economist did express some confidence that affordability is not out of reach in certain housing markets.

“Many markets in the Midwest offer exceptional value with more affordable homes, making homeownership more attainable," Yun said.

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 South and Northeast, the NAR report said. Here are the metro areas where the biggest changes occurred.

• Gulfport-Biloxi-Pascagoula, Miss. (+11.0%)
• Rochester, N.Y. (+10.9%)
• Jackson, Miss. (+10.1%)
• Beaumont-Port Arthur, Texas (+9.9%)
• York-Hanover, Pa. (+9.2%)
• Grand Rapids-Wyoming, Mich. (+8.7%)
• Cleveland-Elyria, Ohio (+8.6%)
• Fort Wayne, Ind. (+8.5%)
• Youngstown-Warren-Boardman, Ohio-Pa. (+7.6%)
• Hartford-West Hartford-East Hartford, Conn. (+7.5%)

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 third quarter of 2026 were in California. Topping the list once again was San Jose-Sunnyvale-Santa Clara, California, with an average home price of $1,920,000, which is up 0.3% from last year.

What about housing affordability in Q3 2026?

Median existing single-family home prices are up 1.7% both year-over-year and from the second quarter of 2026.

The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,251. This was a $48 increase from the previous quarter and up $69 from the same time last year.*

Families typically spend 24.1% of their income on mortgage payments, up 23.9% from the previous quarter and down 24.5% from a year ago.

First-time homebuyers did see a slight boost in prices for starter homes compared to the same time the previous year. The monthly mortgage payment for a typical starter home valued at $368,000 with a 10% down payment in the third quarter of 2026 was $2,208. This monthly mortgage was up $46 from last quarter and up $67 from a year ago.

Are you ready to start the homebuying process? Start with a mortgage pre-approval and begin your journey toward your dream home with Rate! A pre-approval shows sellers and real estate agents that you’re a serious buyer and gives you an idea of how much of a mortgage you’re likely to be approved for.

*Sample scenario provided for illustration purposes only and is not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. Rate cannot predict where rates will be in the future

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.

Rate does not provide tax advice. Please contact your tax adviser for any tax related questions.