U.S. single-family home prices rose 0.8% year over year in May 2026, with a 0.6% monthly increase, driven by buyers with strong financial means. Price growth is strongest in interior states like Illinois, Maine, and Indiana, while some previously hot markets like Rochester, NY, are cooling. Coastal high-value markets see gains fueled by tech wealth. The Sun Belt shows stabilization. Nationally, a 4.8% annual gain is projected by April 2027, but 72% of large metros remain overvalued, signaling ongoing market divergence.
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