Report: National Median Home Price at $389,000, Up 2.4%

The national median home price inched up by 2.4% year-over-year in August to $389,000, according to a data report from the Costar Group (NASDAQ: CSGP) brand Homes.com. This marked an increase of $9,000 from last August.

Year-to-date, home prices have grown only 3.5%, compared to a 7% increase during the same period in 2024. Regional disparities were significant – within the top 40 largest markets, 15 recorded minimal growth of less than 1% or outright declines last month while some Midwest metros recorded gains of more than 7% year-over-year. In contrast, oversupplied markets in the South and highly unaffordable areas of California saw price declines.

“The housing market continues to show signs of cooling as conditions shift toward a buyer’s market,” said the Homes.com report. “Homebuying demand has been soft throughout the year, with inventory levels returning to pre-pandemic norms as homes remain on the market longer. Elevated mortgage rates have weighed on affordability, though recent declines—reaching 6.29% last week, the lowest since October 2024, could provide relief. If rates continue to ease and the labor market doesn’t weaken much further, affordability improvements may help stimulate demand in the months ahead.”