09/21/2026
US Home Prices Face Real Value Erosion
As someone who's spent over two decades guiding buyers, sellers, and investors through shifting real estate landscapes, I’m keeping a close eye on the latest trends in home values. In Q2 2026, we saw US home prices continue their upward climb on paper, yet, after accounting for inflation, real values actually declined for the 13th straight month. While one federal index held steady from mid- to late Q2, and a national index showed annual appreciation rising to about 1.5%—up slightly from earlier in the quarter—these gains still lagged inflation, which hovered around 3.5%. For context, this means that even though nominal prices remain resilient (a federal measure has now shown positive annual appreciation every quarter since early 2012), homeowners’ real purchasing power is quietly eroding. Heading into the second half of the year, affordability remains front and center: typical monthly payments on existing single-family homes have increased again, creating real challenges for first-time buyers. I’ve seen markets adapt before, and understanding these underlying dynamics is key for anyone considering their next move—whether buying, selling, or investing.