Home Price Growth Continues to Moderate, But Trends 'Divided'

Cotality's Home Price Index shows 13 states saw year-over-year price declines, while some markets remain overvalued.

Apr. 9, 2026 at 8:35pm

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A minimalist abstract composition using bold geometric shapes and primary colors to represent the contrasting price movements in different regional housing markets, without any text or identifiable elements.Divergent home price trends across the country illustrate the ongoing rebalancing of the housing market.Newark Today

According to the latest Cotality Home Price Index, home prices saw only a 0.5% year-over-year growth in February, with a 0.16% fall from January. The report found that 13 states, including Washington, D.C., Florida, and Montana, saw year-over-year home price losses. However, some markets like Newark, New Jersey and Rochester, New York saw significant increases. Cotality noted that the current housing market is 'divided' both nationally and within specific regions.

Why it matters

The moderating home price growth is a sign of better times ahead for the housing market, providing some relief to buyers seeking better affordability. However, the 'divided' nature of the market, with some areas still seeing significant price increases while others experience declines, underscores the ongoing process of price discovery and rebalancing in the housing sector.

The details

Cotality's Home Price Index for February found that home prices saw only a 0.5% year-over-year growth, and a 0.16% fall from January. The report noted that 13 states (including the District of Columbia) saw year-over-year home price losses, with the three largest declines in Washington, D.C. (-3.01%), Florida (-2.30%), and Montana (-1.52%). The top markets most likely to see price declines in the next 12 months were all in Florida. Meanwhile, New Jersey, North Dakota, and Illinois saw the highest year-over-year gains, and Newark, New Jersey and Rochester, New York had the largest increases at 6.7% and 6.3%, respectively.

  • Cotality's Home Price Index data is for February 2026.
  • The report found that 13 states saw year-over-year home price losses.

The players

Cotality

A real estate data and analytics firm that publishes the Cotality Home Price Index.

Dr. Selma Hepp

Cotality's Chief Economist, who provided commentary on the current housing market trends.

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What they’re saying

“These diverse trends indicate an ongoing process of price discovery—one where sales and comparisons remain limited—and underscore a market that is rebalancing locally rather than correcting nationally.”

— Dr. Selma Hepp, Chief Economist

The takeaway

The moderating home price growth is a positive sign for the housing market, but the 'divided' nature of the market, with some areas still seeing significant price increases while others experience declines, highlights the ongoing process of price discovery and rebalancing in the sector. This underscores the need for close monitoring of local market conditions as the housing market continues to evolve.