A new report from Homes.com, an online residential marketplace by CoStar Group, indicates continued appreciation in US home values through January 2026, alongside improved affordability and a balanced market for buyers and sellers.
The nationwide median home sale price reached $374,900 in January 2026, an increase from $370,000 in January 2025. This represents an average annual growth of 2.8% over the past two years, aligning closely with overall inflation rates. During this period, income growth has outpaced house price increases, contributing to enhanced home affordability for prospective buyers. Market indicators for January, including an inventory of homes equivalent to four months of supply and a median of nearly 12 weeks on the market before selling, suggest a neutral negotiating environment for both buyers and sellers.
Brad Case, Chief Residential Economist for Homes.com, commented on the market outlook, stating, “The signs from the homes market are encouraging as we move into the spring homebuying season. Home prices have continued to appreciate, but not at the breakneck speed that scared so many buyers away just a few years ago. Continued growth in incomes, along with mortgage rates that have declined appreciably over the past year, have improved the homebuying affordability equation. Homes are being offered for sale with asking prices that set the stage for better negotiations between buyers and sellers.”
Geographically, several large markets in the Northeast and Midwest experienced strong home price appreciation. Philadelphia recorded the highest growth among large markets, with its median home sale price increasing by 8.6% to $380,000 in January 2026, up from $350,000 in January 2025. Other notable increases included Baltimore (5.6%), Washington D.
C. (4.8%), and Boston (3.7%), as well as Midwestern cities like Detroit, Cleveland, Columbus, and Cincinnati, all of which saw over 5% year-over-year growth. Overall, more than 57% of the nearly 1,000 markets tracked by Homes.com reported year-over-year price growth in January. Conversely, some cities in the South and West experienced declines, with Raleigh, North Carolina, seeing a 4.3% decrease and Seattle a 3.8% decline.
Homes.com is identified as a rapidly expanding residential real estate marketplace and the second-largest portal in the United States. It operates as a brand of CoStar Group, a global provider of commercial real estate information, analytics, and online marketplaces, which acquired the platform in 2021. Homes.com focuses on connecting homeowners and their agents with potential buyers, reporting that its members secure 60% more listings. The Homes.com Network, which includes Apartments Network and Land Network, reached an average of 115 million unique monthly visitors in the third quarter ending September 30, 2025. CoStar Group, founded in 1986 and headquartered in Arlington, Virginia, is involved in digitizing real estate globally and operates brands such as CoStar, LoopNet, Apartments.com, and Domain, among others.
