US home price growth picks up but flipping profits keep shrinking
Month-over-month, however, the picture is considerably weaker. National prices edged up just 0.1% in July, well below the pre-pandemic July average of 0.5% recorded from 2015 through 2019. That gap suggests the annual improvement is being driven primarily by a low comparison base rather than a new wave of buyer demand.
“July’s data indicates that price growth is gaining momentum, albeit unevenly,” said Thomas Malone, principal economist at Cotality. “National appreciation reached 1.9%, outperforming June in most major metros. While prices rose just 0.1% over the month, seller concessions are opening up opportunities for buyers. This may be short-lived, however, with higher mortgage rates continuing to create a moving target for buyers, extending the uphill battle into fall.”
Geographic divergence widens
The regional split in the July 2026 data is striking. Chicago posted the strongest annual gain among major cities at 6.9%, followed by New York at 5.8% and Cleveland at 4.2%, according to the Cotality report. At the other end, Seattle recorded a year-over-year decline of 1.6%, while Las Vegas, Denver, Tampa, Portland and Dallas also posted annual losses.
For financial advisors whose clients hold real estate in the Sun Belt or Pacific Northwest, the data reinforces a theme that has been building throughout 2026: markets that surged during the pandemic are correcting, while supply-constrained Midwest and Northeast cities continue to perform. Monthly performance showed similar variation – Cleveland led at 1.0% month-over-month growth, while San Francisco fell 0.6%.
Flipping margins continue to erode
A separate Q2 2026 Home Flipping Report from ATTOM, released October 1, 2026, adds another layer to the residential market story. The typical profit margin on a flipped home fell to 21.5% in the second quarter of 2026, down from 25.7% in the prior quarter and 27.6% at the same point last year, according to ATTOM.
