Home Prices Slip as September Growth Slows
Owners and buyers should expect softer price gains and fewer bidding wars heading into 2027.
Updated on Nov. 4, 2026 in Residential
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Cotality reported national home-price growth of 1.7% year over year in September 2026, while national home prices fell 0.3% from August to September. The monthly decline was the largest since 2022, and the median home price came in at $429,500.
Why it matters
Slower appreciation and a softer monthly trend change the math for buyers, sellers and owners weighing home equity and budgets. High mortgage rates cooled summer demand, which is the main reason prices softened.
Cotality reported 1.7% annual growth nationally in September, with prices down 0.3% from August against a typical 0.2% gain for that stretch. Illinois posted the strongest state gain at 6.9%, and the median home price settled at $429,500.
The players
Cotality
A property-data and analytics company that publishes the national home-price index tracking monthly and annual changes across U.S. metros.
The details
Appreciation strengthened in about half of U.S. metros and weakened in the other half, so national trends mask wide local differences. Annual growth was carried by Northeastern and Great Lakes states, while weakness in the West and South offset those gains. September marked the third consecutive September without monthly home-price growth, pointing to a seasonal pattern that has held through several years.
Timeline
September 2026: national home-price growth rose 1.7% year over year.
August to September 2026: home prices dipped 0.3% month over month.
2027: elevated mortgage rates are expected to limit home-buying opportunities.
12 months through September 2027: home-price growth is projected at 0.9%.
The Home Front
Cotality's index shows September has now recorded no monthly home-price growth for three straight years, a pattern that signals seasonal softening rather than a single bad month. The 0.3% decline is the steepest September-to-August drop since 2022, placing this reading among the weaker monthly results in recent years.
If you are planning to sell, price your home against recent local comparables instead of the national average, since growth varies widely by metro. If you are buying, expect fewer bidding wars in softening markets, and talk with a licensed lender about how current rates affect your monthly payment.
The takeaway
Home prices are no longer rising uniformly, so check conditions in your own metro before deciding on timing. A licensed real-estate agent or appraiser can pull the recent sales data that matters for your specific neighborhood.
Further reading
For context on how these national numbers reach local housing markets, explore Residential coverage across the country.
Source note: This article includes information reported by Chicago Agent Magazine.
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