Home price growth continued to slow in November, according to early estimates published Tuesday by real estate analytics firm Cotality.

Major metro markets in Florida and Texas led the U.S. in annual price declines, the continuation of an accelerated cooling trend in those regional markets.

Regional variation, however, looks to be the theme in 2026, according to the new report.

Selma Hepp, chief economist at Cotality, says “regional differences will remain pronounced, with demand favoring areas that offer both economic opportunity and relative affordability,” in a commentary accompanying the company’s monthly update to its Home Price Index.

Annual price gains were just 1% in November, down from annual gains of 1.1% the previous month. Home prices declined on a monthly basis for the fifth consecutive month in November, sliding 0.1% lower from October after declining by 0.2% over the previous month.

Seven of the 10 markets with the highest pace of annual home price growth in November were in the Midwest. Six of the 10 markets with the steepest declines were in Florida, with two in Texas, one in Georgia and one in Illinois.

A broader recalibration of the post-pandemic housing market has most forecasters expecting slower price appreciation in coming years, with affordability gains in the offing.

Cotality says that mortgage rate movements higher or lower will likely drive a narrative of home price resilience — or softness — next year. The company projects that home prices will have risen 4.3% nationally by November 2026.

Lower rates will help affordability-strained borrowers access homebuying but could fuel more rapid home price appreciation in competitive markets with still-limited inventory.

“The expectation for the upcoming spring season is a seasonal uptick, driven by both returning buyers and those who delayed purchases during the previous year’s slowdown,” said Hepp, describing 2026 as a year where “adaptability and local market knowledge will be key for both buyers and sellers.”