Over the past several years, home prices have fluctuated, but in February, they hit a new record. According to recent data from property data provider Cotality, the national median home price reached $385,000 in February, which means that affording the typical home now requires 22% more income than the average U.S. wage. While the Northeast has consistently outpaced national price growth, states such as West Virginia, Tennessee, and South Carolina are also experiencing surging home prices, partly driven by people relocating to the South. These states now have median home prices in the low $330,000s. In contrast, only Hawaii and Washington, D.C. have seen price declines, though their home values remain well above the national median price.
“Despite recent increases in home prices breaking the trend of flat prices, February’s seasonal rise remained subdued compared to pre-pandemic levels, contributing to a decline in overall annual appreciation. This continued cooling reflects weak homebuying demand as households address economic and policy uncertainty; potential inflation pressures from tariffs; and concerns about job losses and personal financial situation,” said Cotality’s Chief Economist Selma Hepp. Read more