Home prices rose 1.7% nationally in Q1 2026 compared to last year, marking the slowest appreciation since 2012 and a slowdown from the pandemic peak when values rose up to 55%. One-third of major metro areas saw price declines due to higher mortgage rates, affordability issues, and softer demand. Some states experienced declines, while others saw modest to strong gains. Despite slower growth, home values still generally appreciate, supporting related consumer spending.