A closer look at the 3-month home price index through April shows prices rose 0.8% since the start of the year.
Published on June 25, 2026
The U.S. housing market posted a 0.4% year-over-year increase in home prices in April 2026, according to new data from Cotality, but national stability masks significant divergence across regional markets.
A closer look at the 3-month home price index through April shows prices rose 0.8% since the start of the year. While that figure exceeds the annual rate, it remains below the averages seen in recent years. Eleven states recorded negative annual home price growth during the period.
Mortgage Rates Disrupt Spring Season
A surge in mortgage rates disrupted the spring homebuying season and reversed some of the affordability gains created by lower rates seen throughout 2025. Markets that depend more heavily on traditional mortgage financing and rate-sensitive buyers are seeing prices remain relatively flat as a result.
“Market strength suggests that some buyers remain insulated from mortgage-rate volatility and are supported by substantial home equity and stock market gains,” said Cotality Chief Economist Dr. Selma Hepp. “Meanwhile, markets that depend more heavily on traditional mortgage financing and rate-sensitive buyers are seeing prices stay relatively flat. Overall, fewer markets posted year-over-year price declines in April than in prior months, pointing to continued stabilization across the housing market.”
Florida and Select Major Metros Post Declines
Florida continues to lead markets with annual home price declines. West Coast Florida markets, including Cape Coral, St. Petersburg, North Port, and Lakeland, were particularly affected, though some showed signs of price rebounds this spring. Cape Coral prices have since softened again.
Beyond Florida, several major markets saw 3-month price declines through April. The New York City metro dropped 2.3%, Buffalo fell 2.1%, Washington D.C. declined 1.3%, and Fresno, Nassau, and Phoenix each posted decreases. These decelerations point to markets adjusting to higher mortgage rates and affordability ceilings following periods of rapid appreciation.
Midwest and Northeast Lead Gains
In contrast, Midwest industrial hubs and parts of the Northeast continue to outperform national averages. St. Louis posted a 3-month gain of 4.1%, Kansas City rose 4%, and Milwaukee gained 3.6%. Smaller Midwestern markets outpaced even those figures, with Elkhart-Goshen, Ind., recording a 13% 3-month price increase and Kankakee, Ill., rising 10%. Regions with diversified industrial employment and relatively affordable housing stock are drawing increased demand and investment activity.
The Northeast corridor also showed strength, with Newark, N.J., up 6.4%, Rochester, N.Y., up 5.9%, Boston up 4.9%, Cambridge, Mass., up 4.8%, and Bridgeport, Conn., up 4.7% over the same 3-month period.
Bay Area Rebounds
San Francisco recorded the strongest 3-month home price change among the top 100 core-based statistical areas at 8.1%, signaling a notable recovery in the Bay Area market. The Oakland metro followed with a 3% gain. On the West Coast, Los Angeles, San Jose, and Portland fall into the undervalued category, as does New York City on the East Coast.
