U.S. Housing Market Shows Resilience Amid Rising Mortgage Rates: Insights from CoStar Group’s Homes.com Report

In its latest housing market report, Homes.com, a prominent brand under CoStar Group (NASDAQ: CSGP), revealed that the median home sale price in the U.S. reached $395,000 in May 2026. This figure marks a 1.8% increase from the previous year, signaling a modest but positive trend in home values. However, the report also noted that home sales have experienced a slight decline compared to a year earlier, indicating a mixed performance in the housing market.

Brad Case, Chief Residential Economist at Homes.com, commented on the findings, highlighting the surprising resilience of home sales despite the adverse impact of higher mortgage rates. "Although home sales remained below their level from a year earlier, activity in May was firmer than anticipated following earlier increases in mortgage rates. Given those headwinds, the month's sales performance suggested that demand remained relatively steady," Case stated.

The report underscores the significant variance in housing market performance across different regions and property types. While some major metropolitan areas such as Chicago and Baltimore experienced solid gains in home prices, others, including Miami, Orlando, and Raleigh, saw prices remain flat or exhibit modest declines. This disparity suggests that the U.S. housing market is shifting toward a more balanced state, where supply is increasing and demand is adjusting accordingly.

Inventory trends further illustrate these regional differences. Some markets are adding supply more rapidly than others, which contributes to an increasingly uneven landscape. This variation calls for a nuanced understanding of the housing market dynamics, as local conditions dictate performance.

The Homes.com report also provided insights into price movements across different property categories. Single-family homes experienced a price increase of 1.5% compared to the previous year, outperforming townhomes, which saw a 1.1% rise. Conversely, condo prices edged slightly lower, highlighting the diverse factors affecting various segments of the housing market.

Moreover, inventory across all three property types increased, with townhomes experiencing the most significant gains. This trend reflects the ongoing adjustments in the housing supply and demand equation, as buyers and sellers navigate a changing market landscape.

Overall, May 2026 showcased a housing market that is gradually moving toward a more balanced state. With price growth remaining modest, inventory levels above those of the previous year, and sales performance slightly exceeding expectations, the report paints a picture of a resilient market. This resilience is notable, especially when considering the backdrop of rising mortgage rates that have historically dampened buyer enthusiasm.

"The steady demand alongside rising home prices suggests the housing market is proving more resilient, even with activity still somewhat subdued compared with historical norms," said Case, emphasizing the evolving nature of the market.

As the fastest-growing residential real estate marketplace in the U.S., Homes.com is playing a pivotal role in shaping the industry. The platform, which reached an impressive audience of 108 million average monthly unique visitors in 2025, is focused on helping homeowners and agents leverage digital marketing to enhance their visibility and connect with potential buyers. Homes.com has seen organic traffic increase by over 100% year-over-year during the first quarter of 2026, underlining its growing influence in the marketplace.

CoStar Group, the parent company of Homes.com, continues to be a leader in commercial real estate information and analytics, dedicated to digitizing the real estate sector and improving access to market insights for all stakeholders.

As the housing market adapts to new economic realities, the insights from Homes.com will be crucial for understanding emerging trends and consumer behavior, paving the way for future developments in the real estate landscape.