U.S. Housing Market Shows Continued Strain in April: Top 10 Takeaways

The U.S. housing market is entering the second quarter with signs of fatigue. Data from Cotality indicates a market that is no longer surging but not yet correcting, caught between elevated home values and rising ownership costs. Home prices are stabilizing, with a marginal 0.04% gain in February and a 0.34% increase in early March. Sellers are cutting prices, with listings coming to market at lower price points, down 1.1% year-over-year. Regional divergence is widening, with lower-cost markets outperforming major coastal metros. Homeowners are sitting on record levels of equity, but access remains limited. Rent growth is cooling, with single-family rents rising just 1.1% year-over-year. Escrow costs are driving payment shocks, with about 65% of homeowners expected to face escrow shortages in 2026. Institutional investors are stepping back, and mortgage market stress is rising, with serious delinquencies reaching 1.14% in February.