Nationally, U.S. home prices rose 1% year over year from September 2025 to September 2026, a slight deceleration from the previous month. The number of major regional housing markets experiencing year-over-year price declines is increasing. In the August 2025 to August 2026 period, 18% of the 300 largest markets saw falling prices. This figure rose to 22% in the September 2025 to September 2026 period. Home prices are still increasing in areas with low inventory, like the Northeast and Midwest. Conversely, markets in Texas, Florida, Washington, and Colorado with higher inventory are experiencing price corrections or stagnation. The significant increase in mortgage rates above 7% is straining affordability and cooling the market. Sunbelt and Mountain West regions, which saw rapid gains during the pandemic, are now experiencing the most softness. These areas often also have an abundance of new construction, impacting the resale market. While many markets still see price increases, most are below income and inflation growth, indicating real price declines. The divergence between rising and falling markets is wider than usual, with some markets significantly above their peaks while others are well below. This bifurcation is partly due to mean reversion in markets that overheated during the pandemic boom.