New listings are up 21% annually, evidence of
rate lock easing
- New listings rose annually in every major metro.
- Total inventory rose 12% year over year; the largest gains came
in the South.
- Competition is stiff for attractive listings; homes went
pending in just 17 days nationwide.
SEATTLE, March 14,
2024 /PRNewswire/ -- An infusion of new inventory
into the market is welcome news for buyers on the hunt for their
next home this spring. It's also more evidence that the effects of
"rate lock" on homeowners are starting to weaken, according to the
latest monthly report1 from Zillow®.
"For more than a year, Zillow homeowner surveys have shown an
elevated share of homeowners expecting to sell in the next three
years. We're finally beginning to see owners who have been putting
off moves return to the market," said Skylar Olsen, chief economist at Zillow. "For
many households with record-high equity, waiting out potentially
lower rates later in the year may not be worth it."
More choices for buyers
Buyers are seeing more choices
on the market, which should help spur sales this spring.
New listings of existing homes on Zillow are up 21% in February
compared to last year, and rose 20% from January. The rising tide
of new listings was universal; counts are up annually in each of
the 50 largest U.S. metros. They're coming on strongest in the
South, especially Texas and
Florida. Substantial new
construction in these areas is likely helping to give existing
homeowners somewhere to move to, freeing up existing inventory.
Total inventory is increasing significantly as well, up 12%
nationally compared to last year. At just over 900,000, there were
more homes for sale in February than in any February since 2020.
Annual increases are highest in Dallas (up 39%), Tampa (31%), Orlando (30%) and Miami (29%).
Stiff competition for attractive listings
Despite
February's supply increase, competition remains strong for
attractive, well-priced listings. Homes that went under contract in
February typically did so after 17 days — that's slower than during
the rate-fueled frenzy of 2021 and 2022, but far faster than before
the pandemic.
Aspirationally priced listings, or those lacking real or virtual
curb appeal, are lingering on the market. The average time on
Zillow for all homes was 53 days, which is longer than normal for
this time of year.
Price cuts are more common than normal — 1 in 5 listings on
Zillow are seeing cuts — as sellers bring their expectations closer
to where buyers can meet them. Most sellers will have plenty of
cushion to absorb a price cut and come out ahead from when they
bought their home. Typical home values are up from last year in all
but three major metros, and values have risen 41% nationwide since
before the pandemic.
Housing costs continue to climb
The typical home
in the U.S. is worth $349,216, according to the Zillow
Home Value Index — up 40.8% compared to before the pandemic.
Monthly gains were largest in expensive coastal metros:
San Jose (1.6%), San Diego (1.3%), Seattle (1.2%), San
Francisco (0.8%) and Washington, D.C.
(0.8%).
Mortgage rates rose in February, helping bump the cost of a
mortgage on a typical home 9.4% higher than last year. That has
changed the math for home buyers, who now need to earn about 80%
more than in 2020, and are more often partnering with friends and
family or "house hacking" their way to homeownership.
Metropolitan
Area*
|
February
Zillow Home
Value Index
(ZHVI)
(Raw)
|
ZHVI
Change,
Year over
Year
(YoY)
|
Median
Days to
Pending
|
Change in
Days to
Pending
vs. Pre-
Pandemic
Average
|
Share of
Listings
with a
Price Cut
|
Inventory
Change,
YoY
|
New
Inventory
Change,
YoY
|
United
States
|
$349,216
|
4.2 %
|
17
|
-10
|
20.1 %
|
12.0 %
|
20.8 %
|
New York, NY
|
$640,486
|
7.0 %
|
26
|
-31
|
10.3 %
|
-14.8 %
|
3.7 %
|
Los Angeles,
CA
|
$926,861
|
8.3 %
|
14
|
-6
|
14.0 %
|
-3.1 %
|
18.0 %
|
Chicago, IL
|
$307,944
|
7.3 %
|
9
|
-16
|
16.7 %
|
-4.5 %
|
18.1 %
|
Dallas, TX
|
$372,660
|
1.3 %
|
19
|
-9
|
25.9 %
|
38.8 %
|
50.7 %
|
Houston, TX
|
$303,824
|
1.2 %
|
28
|
2
|
24.5 %
|
14.8 %
|
23.1 %
|
Washington,
DC
|
$551,667
|
4.3 %
|
6
|
-17
|
15.4 %
|
-6.3 %
|
10.9 %
|
Philadelphia,
PA
|
$349,795
|
7.7 %
|
9
|
-27
|
17.6 %
|
-4.7 %
|
7.6 %
|
Miami, FL
|
$479,826
|
7.5 %
|
35
|
-9
|
23.8 %
|
28.6 %
|
31.8 %
|
Atlanta, GA
|
$377,476
|
4.4 %
|
22
|
6
|
22.6 %
|
15.5 %
|
32.1 %
|
Boston, MA
|
$668,255
|
8.8 %
|
8
|
-5
|
10.7 %
|
-1.1 %
|
13.5 %
|
Phoenix, AZ
|
$453,327
|
4.0 %
|
20
|
-7
|
32.1 %
|
-10.8 %
|
19.0 %
|
San Francisco,
CA
|
$1,130,166
|
2.5 %
|
12
|
-2
|
11.7 %
|
1.9 %
|
19.2 %
|
Riverside,
CA
|
$568,817
|
6.1 %
|
18
|
-7
|
18.7 %
|
-1.0 %
|
19.6 %
|
Detroit, MI
|
$242,648
|
6.5 %
|
11
|
-11
|
17.9 %
|
-3.4 %
|
16.2 %
|
Seattle, WA
|
$721,382
|
4.4 %
|
6
|
-4
|
13.9 %
|
-1.0 %
|
32.2 %
|
Minneapolis,
MN
|
$363,973
|
2.0 %
|
19
|
-2
|
15.5 %
|
22.5 %
|
40.4 %
|
San Diego,
CA
|
$930,314
|
10.8 %
|
10
|
-11
|
16.8 %
|
8.4 %
|
22.5 %
|
Tampa, FL
|
$377,087
|
3.6 %
|
26
|
2
|
32.8 %
|
30.7 %
|
32.6 %
|
Denver, CO
|
$579,917
|
1.7 %
|
9
|
2
|
21.6 %
|
9.4 %
|
19.6 %
|
Baltimore,
MD
|
$375,866
|
4.2 %
|
7
|
-29
|
18.8 %
|
2.1 %
|
16.3 %
|
St. Louis,
MO
|
$243,550
|
6.2 %
|
7
|
-16
|
16.9 %
|
9.3 %
|
12.7 %
|
Orlando, FL
|
$393,190
|
4.1 %
|
24
|
4
|
25.2 %
|
29.5 %
|
31.3 %
|
Charlotte,
NC
|
$375,008
|
4.6 %
|
13
|
0
|
19.7 %
|
0.1 %
|
21.6 %
|
San Antonio,
TX
|
$283,608
|
-2.5 %
|
44
|
4
|
27.0 %
|
24.7 %
|
20.3 %
|
Portland, OR
|
$538,452
|
2.3 %
|
15
|
1
|
19.0 %
|
14.7 %
|
22.0 %
|
Sacramento,
CA
|
$569,580
|
3.4 %
|
9
|
-4
|
17.3 %
|
-12.4 %
|
16.3 %
|
Pittsburgh,
PA
|
$203,573
|
5.8 %
|
12
|
-40
|
20.5 %
|
-0.3 %
|
11.6 %
|
Cincinnati,
OH
|
$273,507
|
6.2 %
|
5
|
-13
|
19.1 %
|
13.7 %
|
18.6 %
|
Austin, TX
|
$456,293
|
-5.1 %
|
40
|
26
|
21.3 %
|
6.5 %
|
37.1 %
|
Las Vegas,
NV
|
$415,400
|
4.6 %
|
17
|
-9
|
18.5 %
|
-22.5 %
|
19.0 %
|
Kansas City,
MO
|
$295,389
|
5.4 %
|
6
|
-13
|
19.3 %
|
15.2 %
|
26.3 %
|
Columbus, OH
|
$304,628
|
6.3 %
|
5
|
-3
|
20.7 %
|
13.0 %
|
15.9 %
|
Indianapolis,
IN
|
$271,674
|
3.1 %
|
12
|
-12
|
21.8 %
|
13.4 %
|
14.0 %
|
Cleveland,
OH
|
$217,511
|
7.4 %
|
9
|
-40
|
16.0 %
|
-5.1 %
|
3.1 %
|
San Jose, CA
|
$1,537,093
|
8.8 %
|
9
|
-4
|
8.3 %
|
0.3 %
|
24.2 %
|
Nashville,
TN
|
$434,361
|
1.8 %
|
21
|
0
|
26.5 %
|
-1.4 %
|
12.3 %
|
Virginia Beach,
VA
|
$340,789
|
6.0 %
|
24
|
-46
|
16.6 %
|
9.3 %
|
14.4 %
|
Providence,
RI
|
$456,902
|
8.4 %
|
9
|
-25
|
13.2 %
|
-4.1 %
|
4.0 %
|
Jacksonville,
FL
|
$354,250
|
1.2 %
|
34
|
-1
|
26.8 %
|
17.9 %
|
29.8 %
|
Milwaukee,
WI
|
$330,730
|
7.5 %
|
22
|
|
12.2 %
|
11.7 %
|
12.6 %
|
Oklahoma City,
OK
|
$229,838
|
3.6 %
|
19
|
-50
|
23.6 %
|
28.4 %
|
28.0 %
|
Raleigh, NC
|
$437,580
|
3.0 %
|
11
|
3
|
23.8 %
|
4.4 %
|
18.0 %
|
Memphis, TN
|
$235,883
|
1.4 %
|
31
|
-10
|
22.0 %
|
28.5 %
|
24.6 %
|
Richmond, VA
|
$357,211
|
5.4 %
|
7
|
-7
|
17.8 %
|
9.1 %
|
16.4 %
|
Louisville,
KY
|
$248,361
|
4.4 %
|
9
|
-14
|
22.9 %
|
11.9 %
|
13.9 %
|
New Orleans,
LA
|
$235,804
|
-7.5 %
|
42
|
4
|
22.2 %
|
23.2 %
|
20.5 %
|
Salt Lake City,
UT
|
$533,750
|
1.6 %
|
15
|
3
|
20.7 %
|
0.0 %
|
25.5 %
|
Hartford, CT
|
$343,635
|
12.5 %
|
6
|
-27
|
11.2 %
|
2.1 %
|
5.5 %
|
Buffalo, NY
|
$246,490
|
7.5 %
|
11
|
-17
|
11.9 %
|
-9.1 %
|
1.6 %
|
Birmingham,
AL
|
$247,914
|
1.3 %
|
14
|
-5
|
19.7 %
|
10.5 %
|
14.9 %
|
*Table ordered by market size
About Zillow Group:
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Z and ZG) is reimagining real estate to make home a reality for
more and more people. As the most visited real estate website in
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agents, and easier buying, selling, financing and renting
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#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
1 The Zillow® Real Estate Market
Report is a monthly overview of the national and local real estate
markets. The reports are compiled by Zillow Research. For more
information, visit www.zillow.com/research.
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SOURCE Zillow