Homes.com Report: U.S. Median Home Price Increases to $395,000 in May as Sales Hold up Despite Higher Mortgage Rates

About this update from Costar Group, Inc.

Home prices rose modestly in May, while easing supply constraints point to a market moving toward balance. ARLINGTON, Va., June 16, 2026--(BUSINESS WIRE)--Homes.com, a CoStar Group (NASDAQ: CSGP) leading online residential marketplace, released its May 2026 housing market report, showing that the national median home sale price reached $395,000, up 1.8% from May 2025. Home sales were slightly lower than a year earlier, while active listings were higher, reflecting a market moving toward a more neutral balance between buyers and sellers as supply expands. Sales resiliency stands out as conditions vary across markets and property types "Although home sales remained below their level from a year earlier, activity in May was firmer than anticipated following earlier increases in mortgage rates. Given those headwinds, the month’s sales performance suggested that demand remained relatively steady," said Brad Case, Homes.com Chief Residential Economist. "Home sales in May exceeded expectations despite higher mortgage rates earlier in the spring," Case said. "Steady demand alongside rising home prices suggests the housing market is proving more resilient, even with activity still somewhat subdued compared with historical norms." The national picture continued to mask meaningful differences across major housing markets. Some large metros posted solid gains in home prices, including Chicago and Baltimore, while others—including Miami, Orlando, and Raleigh—saw prices soften modestly or remain flat. Inventory trends also differed across markets, with some continuing to add supply more quickly than others, contributing to increasingly uneven conditions across markets. The data showed further variation across property types. Single-family homes saw prices rise 1.5% from a year earlier, slightly outpacing a 1.1% increase for townhomes, while condo prices edged slightly lower. Inventory increased across all three categories, with relatively larger gains among townhomes. Overall, May reflected a housing market that continues to move toward balance. Price growth remained modest, inventory stayed above last year’s level, and sales surprised slightly to the upside relative to expectations, pointing to a market that is moving toward balance even as conditions differ across regions and property types. Additional market insights and reports are ava...

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