Home values are rising again — Here’s where the market is rebounding

SEATTLE - Home values increased for the first time in seven months, and existing home sales were higher than a year earlier, according to the Zillow February Market Report.

Dig deeper:

According to Zillow, the rebound in existing home sales in February indicates that January’s softer numbers were likely affected by severe winter weather.

Over the past year, lower mortgage rates have increased buying power by roughly $30,000 for a median-income household, and the typical mortgage payment — excluding taxes and insurance — has declined 7.7% compared to a year ago.

Meanwhile, new listings dropped 3% year over year in February, potentially reflecting continued disruption from winter storms. 

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What they're saying:

"Zillow's latest data suggests buyers and sellers are starting to regain confidence. Existing home sales rose from a year ago, providing an early glimmer of hope that the housing market has turned a corner after three years bouncing along the bottom," Mischa Fisher, chief economist at Zillow, said in an online news release. "Buyers have more homes within reach to choose from to go along with these friendlier conditions. Lower mortgage rates will also encourage more homeowners who have felt locked in to sell as they will be better able to afford their next home."

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By the numbers:

Home Values & Mortgage Payments

• The typical U.S. home is valued at $361,371.
• The Zillow Home Value Index (ZHVI) increased 0.1% from January to February, with home values up 0.4% compared to a year ago.
• The estimated monthly mortgage payment on a typical home is $1,738, assuming a 20% down payment and excluding taxes and insurance. That payment is 7.7% lower than it was one year ago.

Inventory

• Approximately 1.12 million homes were listed for sale nationwide in February.
• Active inventory rose 5% year over year and edged up 0.4% from January.
• New listings reached 283,478 in February — a 3% decline from a year earlier but a 4.9% increase month over month.

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Sales

• An estimated 239,910 homes were sold in February, according to Zillow’s preliminary sales nowcast. That represents a 1.8% increase from a year ago and a 13% jump from January. (These figures are subject to revision mid-month.)
• Newly pending listings — homes that moved from for-sale to pending status — rose 3.5% compared to last year and climbed 11.1% from January.

Competition

• Homes went pending in a median of 28 days in February — four days longer than a year earlier but 19 days faster than in January.
• About 20.3% of listings had a price cut in February, down 1.3 percentage points from a year ago and 1.7 percentage points from January.
• In January, 20.4% of homes sold for more than their list price, 1.8 percentage points lower than a year earlier and 1.9 percentage points below December levels.

Rents

• The typical U.S. rent is $1,895, according to the Zillow Observed Rent Index (ZORI). Rents are up 1.9% from a year earlier and 0.4% from January, signaling continued moderation in rent growth.
• Concessions were offered on 39.2% of rental listings in February — 1.9 percentage points lower than a year ago but 0.3 percentage points higher than in January.