Homes.com Report Shows Steady Home Price Growth and Improving Market Balance in November
Homes.com, a leading online residential marketplace and part of the CoStar Group, has released a new report examining U.S. home price trends for November, offering detailed insights across major metropolitan areas and housing types. The findings point to continued, moderate price appreciation nationwide, alongside improving affordability and a more balanced housing market as inventory expands and mortgage rates ease.
National Home Prices Continue Moderate Appreciation
According to the Homes.com report, national home prices rose modestly in November, with the median sale price increasing 2.4% compared to the same month last year. The nationwide median home price reached $385,000, reflecting a year-over-year increase of $9,120 from November 2024. This performance continues a notable trend seen throughout much of 2025, with median prices holding within a relatively narrow band between $375,000 and $395,000 for the past ten months.
This period of price stability suggests that the housing market has moved away from the sharp volatility experienced in previous years. Instead, prices are rising at a more sustainable pace, providing greater predictability for both buyers and sellers navigating today’s market.
Affordability Shows Gradual Improvement
Homeownership affordability has improved slightly in recent months, driven by a combination of continued income growth and declining mortgage interest rates. Since reaching a recent peak in late May, mortgage rates have fallen by approximately 0.7 percentage points, easing monthly payment pressures for prospective buyers.
While affordability remains a challenge in many markets, these incremental gains have helped restore confidence among buyers who had previously been sidelined by high borrowing costs. Lower rates, combined with stable price growth, are allowing more households to reassess their purchasing power and re-enter the market.
Inventory Expansion Signals a Healthier Market
On the supply side, the housing market is showing signs of improved balance. The inventory of homes available for sale increased 17.9% year over year, reaching the highest November level recorded since 2015. This rise in available listings represents a significant shift from the tight, seller-dominated conditions that defined much of the past several years.
Increased inventory has broadened buyer choice and reduced the urgency that previously fueled bidding wars in many markets. Sellers, meanwhile, are adjusting expectations as competition grows, creating a market environment where negotiations are becoming more common and transactions more measured.
Market Dynamics Shift Toward Buyer-Seller Balance
“The market has shifted from one in which opportunistic sellers hoped to take advantage of scant supply to one in which sellers and buyers are finding common ground,” said Brad Case, Chief Residential Economist for Homes.com. “Wider inventory is giving buyers a better opportunity to find the right home. Continued price appreciation, at a time in which interest rates have been easing, gives homebuyers confidence that they can clear the affordability barrier.”
This evolving dynamic marks an important transition for the housing sector, signaling greater stability and long-term sustainability as supply and demand move closer to equilibrium.
Midwest Markets Lead Price Growth
Regional performance varied widely across the country, with Midwest markets continuing to outperform other regions in terms of price appreciation. Cleveland led all large metropolitan areas with an 11.6% increase in median home prices compared to a year earlier. Cincinnati followed with a 10.0% gain, while Pittsburgh and Saint Louis recorded increases of 8.7% and 7.5%, respectively.
These markets have benefited from relatively affordable price points, steady employment conditions, and strong local demand, making them increasingly attractive to both first-time buyers and relocating households.
Select Markets See Price Declines
Not all markets experienced growth. Thirteen large metropolitan areas recorded year-over-year price declines in November. Jacksonville, Florida, saw the steepest decrease, with its median home price falling 4.1% compared to the same period last year.
Despite these localized declines, the broader national picture remains positive. Across nearly 1,000 housing markets tracked by Homes.com, approximately 65% reported price appreciation over the past year, underscoring the overall resilience of U.S. home values.
Data Updates and Expert Insights Available
Homes.com notes that the data presented in this report may be subject to slight revisions as additional home sales are recorded. Brad Case, Chief Residential Economist, is available for interviews to provide deeper insights into the findings and broader residential real estate trends.
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