U.S. home prices dipped in early 2026 due to high mortgage rates, but many cities still saw strong long-term growth.

As of January 2026, many U.S. metro areas show mixed home price trends, with short-term declines due to higher mortgage rates and cooling demand, but strong long-term growth in several cities. While most regions experienced year-over-year price drops, typically ranging from 1% to over 11%, five-year gains varied widely, with some cities seeing increases exceeding 40%. Markets in Florida, Georgia, Texas, and other states highlight regional disparities, where coastal and suburban areas continue to appreciate due to limited inventory and sustained demand. The national average home value was $359,078 in December 2025, up slightly from the prior year.