The housing market has cooled off this winter with the annual pace of home price growth easing to levels unseen since the nation was recovering from the Great Recession. And while some areas continue to see strong price growth, others have seen notable declines.
New data from Cotality, a data analytics and tech company in the real estate, mortgage and insurance industries, showed that annual housing price growth slowed to just 0.9% in December, which was one of the softest rates since the post-Great Recession recovery.
“We are seeing a significant departure from the rapid surges of recent years; while the upward pressure on prices remains, the momentum has moderated enough to suggest that the market is finally becoming more navigable for prospective buyers,” said Cotality Chief Economist Selma Hepp.
HOMEBUYERS GAIN UPPER HAND IN 3 MAJOR CITIES AS INVENTORIES GROW
Home prices have declined in several key areas across the South and West, particularly in areas that had previously seen rapid expansion as in-migration trends moderate and inventory levels increase.
Cotality’s report found that the local housing market with the steepest declines was Kahului-Wailuku, Hawaii, with prices down 8% in December on a year-over-year basis.
The Lone Star State had a pair of localities in the top 10, with Victoria, Texas, down 7.4% and Wichita Falls, Texas, down 7.2%.
Napa, California, had the steepest decline among West Coast localities, with prices falling 7.1%.
THE ‘POISON PILL’ AND DIGITAL SECRETS FLIPPING THE SUNSHINE STATE’S CONDO POWER DYNAMIC
Florida had five communities represented in the top 10 localities with the steepest price declines, led by Naples (-6.8%), Punta Gorda and Cape Coral (-6.2% each), North Port (-5.9%) and Sebastian (-5.2%).
Rome, Georgia, rounded out the top 10 with a 5.2% year-over-year price decline.
The hottest housing market identified in Cotality’s report was Youngstown, Ohio, which saw prices surge 15.9% over the last year.
THESE STATES ARE CONSIDERING ELIMINATING PROPERTY TAXES FOR HOMEOWNERS
Four of the hottest markets were in the state of Indiana, led by national runner-up Terre Haute’s gain of 11.4%. Other Hoosier State metros with notable price rises were Columbus and Muncie, with 10.2% gains each, and Kokomo’s 8.8% increase.
Illinois was home to a pair of housing markets with strong price growth, as prices in Decatur rose 10.5% and Peoria 8.9%.
Two other markets in the Midwest and Plains were in the 10 hottest markets, with prices up 8.7% in Manhattan, Kansas, and 8.5% in Traverse City, Michigan.
The hottest housing market in the South was in Hattiesburg, Mississippi, which saw prices rise 8.4% over the last year.
“As we move through 2026, the market’s trajectory will depend heavily on wage growth and how soon buyers regain the purchasing power needed to meet sellers’ pricing thresholds. For now, Cotality data shows a housing landscape is still finding its footing, but it is ultimately stabilizing after an extended period of imbalance,” Hepp said.
Fox News Digital’s Amanda Macias contributed to this report.
Read the full article here
