US Housing Market Expands
US Home Prices Rise 2.6% in July as Sales and Inventory Both Grow
U.S. home prices rose 2.6% year over year in July 2026, reaching a national median sale price of $400,000, according to Homes.com. The gains came even as more homes entered the market and mortgage rates stayed elevated.
Home sales climbed 2.9% from a year earlier, while the number of homes for sale grew 4.4%, Homes.com reported. The market is expanding — but prices are holding steady rather than surging.
Modest Price Growth Holds Steady Nationwide
The national median sale price hit $400,000 in July 2026, up from roughly $389,000 a year ago. Single-family home prices rose 2%, slightly below the overall market gain, according to Homes.com. Growth was real, but restrained — far from the double-digit jumps seen in recent years.
Chief Residential Economist Brad Case said the so-called "mortgage lock-in effect" is easing. That effect happens when homeowners refuse to sell because they don't want to give up their low mortgage rate. Now, with rates staying high across the board, more owners are choosing to list anyway, Las Vegas Sun reported.
Chicago and New York Lead, Sun Belt Cities Soften
Not all markets moved the same way. Chicago, Baltimore, Pittsburgh, and New York posted stronger price gains than the national average, according to Homes.com. These older, supply-constrained cities tend to hold value even when the broader market cools.
Meanwhile, prices softened in Raleigh, Seattle, Dallas-Fort Worth, and San Jose. These are markets that saw massive growth during the pandemic boom. Now, with more homes available, buyers have options — and sellers have less pricing power.
More Homes for Sale but Demand Keeps Pace
Inventory grew 4.4% year over year in July. That is a meaningful increase. More supply usually pushes prices down. But home sales also rose 2.9%, which absorbed much of that new inventory, Homes.com reported. Supply and demand stayed close enough to keep prices stable.
The balance between buyers and sellers is shifting slowly. More homes are available than at any point in recent years. But demand has not collapsed. That combination explains why prices are rising — just not fast.
Mortgage Rates Reshape Who Sells and Who Waits
High mortgage rates have reshaped seller behavior. For years, homeowners with 3% or 4% rates refused to sell, knowing their next mortgage would cost far more. Brad Case of Homes.com said that reluctance is fading. More sellers are now accepting today's higher-rate reality and listing their homes.
This shift is key for the market's future. If more homeowners keep listing, inventory will continue to grow. That could slow price gains further in the months ahead — especially in markets where supply is already rising fast.
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