Why Are Home Prices Still Going Up?

If you have been waiting for home prices to suddenly drop because there are more homes for sale, the latest numbers are a good reminder that the real estate market is rarely that simple.

According to new Homes.com data, the median U.S. home sale price reached $395,000 in August 2026 — up 2.1% from a year ago.

At the same time:

• Home sales dropped 4.3%

• Inventory increased 5.4%

• Yet home prices still increased

That may sound contradictory, but it actually tells us quite a bit about today's housing market.

Buyers Have More Choices — And They Are Being Pickier

For several years, buyers were dealing with extremely limited inventory. In many areas, there simply weren't enough homes available.

That is changing.

More homes are coming onto the market, which means buyers have more choices and don't necessarily have to jump on the first house they see.

But buyers haven't disappeared.

They are simply becoming more selective about what they buy and how much they are willing to pay.

Homes that are priced correctly, show well and offer good value can still attract serious buyers. Homes that are overpriced may sit longer, receive fewer offers and eventually require a price adjustment.

This is why I keep telling sellers:

Today's market will expose an unrealistic asking price very quickly.

Prices Aren't Moving the Same Everywhere

This is also important.

There really isn't one single "U.S. housing market."

In August, 28 of the 40 major markets tracked by Homes.com experienced year-over-year price increases. Ten markets experienced declines, while two were essentially unchanged.

And the differences were significant.

Los Angeles for example, saw its median sale price increase 2%, while Austin experienced a 7.8% decline.

Even different types of properties performed differently.

Single-family home prices increased 1.3%, condos increased 1.9%, while townhouse prices were essentially flat.

So when someone tells you, "Home prices are going up" or "The housing market is dropping," my first question is:

Where? And what type of property?

National headlines are interesting, but they don't tell you what your particular home or neighborhood is doing.

What Does This Mean for Buyers?

There are actually some positives in this market for buyers.

More inventory means you may have more choices and, depending on the property, potentially more negotiating power than buyers had a few years ago.

That doesn't always mean getting a huge price reduction.

Sometimes the better negotiation may be:

✓ Seller-paid closing costs
✓ A mortgage-rate buydown
✓ Repairs or credits
✓ Better terms
✓ A price reduction

Every property and every seller is different.

The goal shouldn't simply be to "get a deal."

The goal is to structure the best overall purchase for your situation.

What Does This Mean for Sellers?

Sellers can still do very well in this market, but pricing and presentation matter more now.

When buyers have more choices, they compare everything.

• Price.
• Condition.
• Location.
• Upgrades.
• Monthly payment.
• HOA costs.
• Insurance.

And how your home compares with everything else they can buy.

You don't want to price your home based on what your neighbor was asking six months ago.

You want to know what buyers are actually paying today.

Mortgage Rates Are Still the Big Question

Mortgage rates continue to have a major influence on affordability.

Homes.com reported that the average 30-year fixed mortgage rate had risen more than half a percentage point since the beginning of July.

That matters because buyers don't just shop based on the price of the house.

They shop based on the monthly payment.

Even a relatively small change in interest rates can make a noticeable difference in that payment.

That's also why I believe buyers and sellers need to look at the entire transaction instead of focusing only on the sales price.

Sometimes negotiating a mortgage-rate buydown can help a buyer more than negotiating the same amount as a price reduction.

My Take After More Than 30 Years in Real Estate

Markets change. They always have.

I've worked through hot markets, slow markets, recessions, foreclosures, short sales, extremely low interest rates and extremely limited inventory.

There is almost always an opportunity somewhere.

The important thing is not making your decision based only on headlines.

If you're selling, understand your local competition and price accordingly.

If you're buying, understand your financing options and don't assume that the asking price is the only thing that can be negotiated.

And whether you're buying or selling, look at the numbers for your neighborhood and your situation.

Real estate is local.

If you're thinking about buying or selling in Santa Clarita, Valencia, Stevenson Ranch, Saugus, Canyon Country, Newhall or the surrounding areas, I'm always happy to look at the numbers with you.

No pressure. Just information so you can decide what makes sense for you.

Mariness Chata | Realtor
RE/MAX of Santa Clarita
📞 661-317-3332
📧 RealtorMariness@gmail.com

Source: Homes.com News, September 22, 2026. National housing statistics referenced above are based on Homes.com data.