U.S. home prices dip as rents edge higher

In the four weeks ending October 25, 2026, the median U.S. home-sale price was $389,601, down 0.1% from a year earlier. This marked the first year-on-year decline in more than three years and followed a 0.2% drop in the previous week after a prolonged period of steady increases. On a seasonally adjusted basis, the median asking price stood higher at $400,703, up 1.2% year over year. Together, these figures point to a modest easing in sale prices even as sellers continue to list homes at higher levels than a year ago.

Across major metropolitan areas, price movements were mixed. The San Francisco area saw the largest year-over-year median sale price increase at 15%, followed by New Brunswick, New Jersey, at 8.4%, and Pittsburgh at 7.4%. On the downside, Seattle recorded a 5.1% annual decline in median sale price, with San Jose, Austin, Kansas City and Nashville also posting decreases. These regional differences sit against the backdrop of a small national price decline.

Homebuying demand continued to soften over the same period. Pending home sales declined 1.8% from the prior week to their lowest level in data going back to 2021. For the third consecutive week, pending sales fell in each of the 50 most populous U.S. metro areas. The share of homes going off the market within two weeks slipped to 27.5%, down from 28.5% a year earlier, and the median days on market rose to 50.

Financing costs remain a central constraint. The median monthly mortgage payment reached $2,786 at a weekly average mortgage rate of 7.32%, an increase of 10.7% from a year earlier. The typical buyer’s payment burden remains elevated, discouraging many would-be purchasers.

On the supply side, prospective sellers also pulled back. Seasonally adjusted new listings totaled 352,421, down 4% year over year and 0.6% week over week, reaching their lowest level since January. At the same time, seasonally adjusted active listings rose 2.2% from a year earlier and 0.3% from the prior week to 1,510,619 homes. Months of supply increased to 4.5, up from 4, a level often associated with a more balanced market between buyers and sellers.

Price adjustments remain common. In September, 21% of U.S. home listings recorded price cuts, while in the latest four-week period the share of active listings with price drops was 21.5%, up from 20.9% a year earlier. Even so, 23.2% of homes sold above list price, and the average sale-to-list price ratio held at 98.3%, indicating that many final sale prices remain close to initial asking levels.

While the for-sale market softened, rents have begun to move higher again. The U.S. median rent in October increased 0.1% year over year, the first annual rise in more than three years following a period of declines linked to an oversupply of new apartments. The vacancy rate in multifamily buildings was 7% in October. Although this remains high relative to longer-term norms, it has been falling since a peak earlier in the year.

Rental conditions vary across cities. Rental rates have started to recover in Austin and Tampa, while Phoenix, Las Vegas and San Antonio continue to see some of the steepest rent declines.