The cost to purchase a median-priced home in the United States grew 2% in September compared to the same time a year earlier, ending a summer that saw a slight uptick in price growth.
New data from Homes.com revealed that in September, the median price for a single-family home was $385,000, an increase of $7,500 from the same period in 2024. Although it’s an annual uptick, September’s median price is still below June’s peak of $395,000.
All told, the pricing data fits into the broader consensus among some housing economists and experts that the market showed signs of moderating in September. In addition to slower price appreciation compared to this time last year, mortgage rates have also decreased since the beginning of the summer.
At the same time, Homes.com data showed that listings were up 8.1% in September compared to a year earlier — the highest volume of listings added to the market in September since 2021. The increase sent inventory past pre-pandemic levels, another sign that the balance between supply and demand is improving.
"Easing mortgage rates and improved inventory conditions have helped improve market balance, even as prices remain just below the summer peak," according to Erika Ludvigsen, national director of residential analytics at Homes.com.
Geographical trends reflect a market that is rebalancing
While the overall picture shows cautious optimism, the reality at the local level is varied.
Of the nearly 1,000 markets tracked by Homes.com, 63% experienced annual price increases and 37% saw annual price decreases. Among the top 40 markets, 10 saw their median prices remain flat or decline, while another 10 experienced price increases of 3% or higher.
A large share of that growth was concentrated in the Midwest, a continuation of an existing trend, according to the Homes.com data. For example, Detroit, St. Louis, Cleveland and Kansas City, Missouri, were among markets with the largest increase in September home sale prices.
On the opposite end of that spectrum, many of the markets that saw their prices stay flat or decline were in the Sun Belt region— where there’s currently an oversupply of houses. In September, those markets included places such as Richmond, Virginia; Raleigh, North Carolina; Atlanta; Austin, Texas; and Houston.
"The geographical trends in price appreciation reflect market rebalancing," Ludvigsen told Homes.com. The Midwest region’s stability is attributed to steady demand and fewer new deliveries, which have helped maintain pricing power. Many Sun Belt metros saw rapid homebuilding during and after the pandemic. This has led to excess supply and price moderation. "There was also variation in how price growth manifested across housing types.
While detached single-family home prices increased about 1.8% to a median price of $390,000 in September, the prices for attached housing and condos remained unchanged compared to a year earlier.