REAL ESTATE MARKETS · SEPTEMBER 5, 2026
FHFA Finds Home Prices Up 2.1% Year Over Year With Wide Local Variation
FHFA's latest quarterly index shows U.S. single-family house prices rising 0.3% in the second quarter and 2.1% from a year earlier, while four states and 24 of the 100 largest metro areas declined annually.
The latest FHFA reading
FHFA's August 25 release reported that U.S. single-family house prices increased 0.3% from the first to the second quarter of 2026 and 2.1% from the second quarter of 2025. The seasonally adjusted monthly index for June was unchanged from May. The index is based on repeat-sale data and includes Fannie Mae and Freddie Mac transactions, with additional index series using other data.
- 01Quarterly growth was 0.3%
- 02Local results varied widely
- 03Underwrite the specific market
Why local variation matters
Prices rose over the year in 46 states and the District of Columbia but declined in four states. Seventy-six of the 100 largest metropolitan areas posted annual gains. State changes ranged from an 8.3% increase in Alaska to a 1.2% decline in New Mexico, while the largest-metro results ranged from a 7.7% gain in Elgin, Illinois, to a 3.7% decline in Everett, Washington.
Practical borrower takeaway
National appreciation is not a substitute for property-specific valuation. Investors and rental-property borrowers should use current local comparable sales, market rents, actual collections, vacancy, repairs, taxes, insurance, and management costs. Model proceeds and exit value conservatively, especially when refinancing or selling depends on continued appreciation. Commercial-property underwriting may use different data and valuation methods.
Property investors should replace national appreciation assumptions with current local comparable sales, rents, expenses, vacancy, and conservative exit-value scenarios.
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