09/21/2026
US Home Prices Face Real Value Erosion
Tracking the latest trends in the real estate market is crucial for anyone looking to buy or sell a home—especially as we navigate an environment where home prices continue to rise in name, but not always in real value. In Q2 2026, while national home prices showed nominal growth, a key federal index remained flat from mid- to late-quarter after adjusting for seasonality. The yearly appreciation rate edged up to about 1.5% in late Q2, a slight improvement from 1% earlier in the quarter, yet still lagging behind the current inflation rate of roughly 3.5%. This gap means that, when factoring in inflation, home values have actually declined for the thirteenth consecutive month. The good news is that softer inflation and steadier nominal price gains have slowed the pace of this real-value decline. One thing that stands out: a federal measure has consistently shown positive annual gains every quarter since early 2012, underscoring the resilience of nominal prices—even as buyers feel the squeeze. As we move into the latter half of the year, affordability remains a top concern—with typical monthly payments on existing single-family homes rising again, making it especially challenging for first-time buyers. My ongoing commitment is to stay informed and share actionable insights, so you can make confident decisions in an ever-changing market.