The median U.S. home-sale price rose 2.3% during the four weeks ending in mid-November the biggest increase in seven months, according to a Redfin report.
According to the report, sales prices are increasing even with falling demand because total inventory is dwindling. Still, it’s important to note that home prices are growing slower than wages and inflation, meaning homebuying is becoming slightly more affordable.
For the year, pending home sales fell 0.8% compared to the same period in 2024, the biggest decline in four months. Redfin theorized that many would-be buyers are staying on the sidelines due to economic instability and high housing costs, noting that along with still-increasing home prices, mortgage rates are inching up after dropping to their lowest level in a year. Homes are also taking longer to sell; the typical home that goes under contract does so in 49 days, the longest span for this time of year since 2019.
However, sale prices aren’t rising everywhere, though. The median home-sale price declined in 18 of the 50 most populous U.S. metros, the most in over two years (tied with the 4 weeks ending November 2).
Prices Fell the Most in Fort Worth
Prices fell most in Fort Worth, Texas (-3.9% year over year), Dallas (-3.3%) and Jacksonville, FL (-3.3%). The next-biggest drops were in Miami (-2.5%) and Seattle (-2.2%).
“Buyers may be able to find a deal,” said Jonathan Buch, a Redfin Premier agent in West Palm Beach, FL. “In today’s slow market, the people who are selling are typically the ones who have to because of a divorce or job relocation. Many of those people are willing to sell at a lower price than they could get if they waited for demand to pick up. Still, homes that are fairly priced and move-in ready—especially the ones with pools—are selling quickly, with bidding wars.”
Mortgage lenders see the rising home price trend continue in 2026.
“I see prices going up in lower-cost metros simply due to the migration of people looking to find more affordable housing,” said Jordan Del Palacio, with Churchill Mortgage. “I think that home prices will rise in some areas and come down in other areas. Right now, inflation is driving interest rates and interest rates are driving the value of homes in a lot of higher-cost metropolitan areas, such as Seattle, Portland, San Francisco, New York City, Chicago, etc. In the higher-cost areas, I see the values decreasing slightly and then stabilizing. appraisals on offers.
“We are starting to see some softening in some areas,” added Michael Pearson, senior vice president of business development for A&D Mortgage, LLC. “In south Florida, for example, where we have seen prices skyrocket since the pandemic; we are starting to see houses taking longer and longer to sell. Additionally, the continued strain on affordability from increase interest rates, rising insurance costs, property taxes, etc., have put less borrowers on the market, many opting to remain in rentals or look to save up longer to get into a home.
The post Home Prices up in November; More Increases Expected in 2026 first appeared on The MortgagePoint.
