Zillow's February Market Report points to spring rebound
MWN-AI** Summary
Zillow's February Market Report reveals promising signs for a potential spring rebound in the housing market, as key indicators show a slight but significant upswing. Existing home sales rose by 1.8% year-over-year, reflecting an important recovery from the sluggish figures seen in January, likely hampered by severe winter weather. As spring approaches, the increase in sales suggests growing confidence among buyers and sellers.
One of the main drivers of this rejuvenation is improved affordability, bolstered by a notable decrease in mortgage rates. Over the past year, lower rates have enhanced buying power by approximately $30,000 for median-income households, while the typical mortgage payment has seen a decline of 7.7%, excluding taxes and insurance. This shift, especially if mortgage rates maintain below the 6% threshold, is expected to elevate market activity.
Despite a 3% decrease in new listings compared to last year, which might have resulted from continued winter disruptions, overall inventory rose by 5% year-over-year, offering buyers more choices. Zillow's Chief Economist, Mischa Fisher, expressed optimism, noting a potential turning point after three stagnant years in the market. As more homeowners feel encouraged to sell due to favorable conditions, the market may see a broader assortment of options for buyers.
Overall, with typical home values rising slightly to $361,371 and the current rental market reflecting modest growth, Zillow's data indicates that the housing market may finally be poised for a turnaround as we head into the spring.
MWN-AI** Analysis
Zillow's February Market Report suggests an encouraging rebound ahead for the housing market as we transition into spring. Key highlights from the report indicate a 1.8% year-over-year increase in existing home sales and a stabilization in home values—up 0.4% compared to the previous year. These indicators signal a renewed optimism among buyers and sellers, following several lackluster years in the housing market.
This uptick can largely be attributed to improved affordability due to lower mortgage rates. For example, the typical mortgage payment has decreased by 7.7% over the past year, enabling median-income households to boost their purchasing power by around $30,000. A sustained mortgage rate dip below 6% could facilitate further buyer engagement, spurring transactions as more potential sellers may feel encouraged to list their properties.
While new listings saw a slight decline of 3% from February of the previous year, the total active inventory increased by 5%. This discrepancy indicates that despite fewer new listings, the overall market availability is improving, presenting more options for buyers. It will be crucial to monitor new listings in the upcoming months to gauge the market's ability to sustain momentum.
Investors and potential buyers are advised to watch for these trends in both mortgage rates and inventory. There is evidence of growing market confidence, and as conditions appear more favorable, engaging in the market sooner rather than later could yield significant benefits. As spring approaches, those looking to buy or sell should be prepared for an uptick in activity as more individuals seek to capitalize on improved conditions and regain their footing in the market.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Existing home sales rose 1.8% year over year amid improved affordability
SEATTLE, March 4, 2026 /PRNewswire/ -- Home values rose for the first time in seven months and existing home sales improved from a year ago, according to the Zillow® February Market Report. The housing market is perking up as spring approaches, possibly foreshadowing a more active year for transactions after three low-volume years.
The improvement in existing home sales in February suggests January's weaker figures were likely influenced by severe winter weather, while improved affordability aligns with Zillow's forecast for increased activity this year. Lower mortgage rates have helped improve buying power by about $30,000 for a median-income household over the past year, while the typical mortgage payment is down 7.7% from a year ago, excluding taxes and insurance. A sustained dip for mortgage rates below 6% could provide a psychological boost that prompts more buyers and sellers to return to the market.
New listings fell 3% from a year earlier in February, as winter storms may have continued to disrupt activity. This will be an important metric to watch in the months ahead to track how many fresh options will be available to buyers benefiting from improved affordability.
"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," said Mischa Fisher, chief economist at Zillow. "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."
Home Values & Mortgage Payments
- The typical U.S. home value is $361,371.
- The Zillow Home Value Index (ZHVI) rose 0.1% month over month in February. Home values are 0.4% higher than a year earlier.
- The monthly mortgage payment on a typical U.S. home is $1,738, assuming a 20% down payment and excluding taxes and insurance. That is 7.7% lower than last year.
Inventory
- There were 1.12 million homes for sale nationwide in February.
- Active inventory was 5% higher than a year earlier. Inventory rose 0.4% from January.
- New for-sale listings totaled 283,478 in February, down 3% from a year earlier and up 4.9% from January.
Sales
- 239,910 homes were sold in February, according to the preliminary Zillow sales count nowcast. That is 1.8% higher than a year earlier and up 13% from January. These figures will be revised mid-month.
- Newly pending listings, which measures listings that changed from for-sale to pending status rather than closed sales, shows 3.5% growth from a year earlier and an 11.1% increase over January.
Competition
- Homes took a median of 28 days to go pending in February. That was four days longer than a year earlier and 19 days shorter than January.
- The share of listings with a price cut in February was 20.3%. That was down 1.3 percentage points from a year earlier and down 1.7 percentage points from January.
- 20.4% of homes sold above list price in January, the most recent data available. That was 1.8 percentage points lower than a year earlier and 1.9 percentage points lower than December.
Rents
- The typical rent nationwide is $1,895, according to the Zillow Observed Rent Index (ZORI). That's 1.9% higher than a year earlier and up 0.4% from January, pointing to continued deceleration of rent growth.
- 39.2% of rental listings on Zillow offered a concession in February. That's 1.9 percentage points lower than a year earlier and up 0.3 percentage points from January.
Local data can be found on Zillow's market explorer. The Zillow March Market Report is expected to be released April 6.
Zillow February Market Report | ||||||||
Metro Area* | Typical | Home | Home | Inventory | Sales | Typical | Rent | Rent |
United States | $361,371 | 0.1 % | 0.4 % | 5.0 % | 1.8 % | $1,895 | 0.4 % | 1.9 % |
New York, NY | $711,726 | 0.3 % | 4.1 % | -2.5 % | -8.3 % | $3,258 | 0.5 % | 4.2 % |
Los Angeles, CA | $951,833 | 0.3 % | -0.5 % | 6.0 % | -5.5 % | $2,884 | 0.2 % | 1.1 % |
Chicago, IL | $340,834 | 0.3 % | 4.2 % | -4.4 % | -6.5 % | $2,132 | 0.9 % | 5.5 % |
Dallas, TX | $361,020 | 0.0 % | -3.6 % | 5.2 % | -0.5 % | $1,630 | 0.3 % | 0.2 % |
Houston, TX | $304,131 | -0.1 % | -2.0 % | 14.7 % | 4.9 % | $1,620 | -0.1 % | -0.4 % |
Washington, DC | $571,301 | 0.1 % | -0.6 % | 16.3 % | -2.2 % | $2,331 | 0.5 % | 0.2 % |
Philadelphia, PA | $376,931 | 0.0 % | 2.5 % | 0.1 % | -8.9 % | $1,859 | 0.6 % | 3.1 % |
Miami, FL | $470,075 | 0.0 % | -3.9 % | -5.2 % | 4.8 % | $2,654 | 0.2 % | 0.5 % |
Atlanta, GA | $375,728 | 0.0 % | -2.4 % | 3.5 % | -3.0 % | $1,808 | 0.2 % | 1.6 % |
Boston, MA | $713,906 | 0.0 % | 1.4 % | 3.6 % | -1.4 % | $3,098 | 0.6 % | 1.9 % |
Phoenix, AZ | $446,190 | 0.1 % | -1.8 % | 4.7 % | 0.4 % | $1,724 | 0.4 % | -0.7 % |
San Francisco, CA | $1,113,913 | 0.6 % | -2.0 % | -8.4 % | 31.7 % | $3,103 | 1.1 % | 6.3 % |
Riverside, CA | $580,572 | 0.2 % | -1.5 % | -0.3 % | -4.3 % | $2,478 | 0.4 % | 1.7 % |
Detroit, MI | $259,012 | 0.1 % | 2.9 % | 14.1 % | -13.4 % | $1,461 | 0.2 % | 2.4 % |
Seattle, WA | $736,787 | 0.2 % | -1.8 % | 28.4 % | -6.3 % | $2,181 | 0.2 % | 1.8 % |
Minneapolis, MN | $381,372 | 0.2 % | 1.9 % | 14.2 % | -1.5 % | $1,664 | 0.6 % | 4.0 % |
San Diego, CA | $926,935 | 0.4 % | -2.0 % | 3.8 % | -0.5 % | $2,871 | 0.5 % | 1.6 % |
Tampa, FL | $355,768 | 0.1 % | -4.0 % | 1.6 % | 0.7 % | $1,976 | 0.3 % | -1.4 % |
Denver, CO | $562,498 | 0.1 % | -3.1 % | 9.7 % | 1.9 % | $1,844 | 0.3 % | -1.0 % |
Baltimore, MD | $395,198 | 0.1 % | 0.7 % | 11.1 % | 6.7 % | $1,857 | 0.3 % | 2.5 % |
St. Louis, MO | $266,286 | 0.2 % | 2.7 % | 5.4 % | 2.1 % | $1,395 | 0.2 % | 3.5 % |
Orlando, FL | $383,704 | 0.0 % | -3.6 % | -0.8 % | 8.6 % | $1,922 | 0.3 % | 0.2 % |
Charlotte, NC | $382,994 | 0.0 % | -0.6 % | 11.2 % | -5.8 % | $1,716 | 0.3 % | 0.5 % |
San Antonio, TX | $275,672 | -0.1 % | -2.4 % | 8.9 % | 3.1 % | $1,392 | 0.2 % | -1.6 % |
Portland, OR | $540,459 | 0.1 % | -1.1 % | 14.4 % | -0.1 % | $1,779 | 0.3 % | 0.9 % |
Sacramento, CA | $571,639 | 0.1 % | -2.0 % | -3.5 % | -2.8 % | $2,211 | 0.2 % | 2.1 % |
Pittsburgh, PA | $221,878 | -0.1 % | 1.3 % | 5.7 % | -10.6 % | $1,446 | 0.2 % | 3.8 % |
Cincinnati, OH | $300,802 | 0.2 % | 2.4 % | 8.4 % | 6.9 % | $1,536 | 0.7 % | 3.5 % |
Austin, TX | $421,553 | -0.1 % | -5.9 % | 4.4 % | 2.0 % | $1,563 | 0.5 % | -2.4 % |
Las Vegas, NV | $427,252 | -0.1 % | -2.8 % | 12.8 % | -8.2 % | $1,720 | 0.4 % | -0.1 % |
Kansas City, MO | $317,307 | 0.3 % | 3.1 % | 10.0 % | 21.9 % | $1,481 | 0.4 % | 3.5 % |
Columbus, OH | $322,372 | 0.2 % | 1.1 % | 5.7 % | 1.0 % | $1,484 | 0.5 % | 1.7 % |
Indianapolis, IN | $287,261 | 0.1 % | 1.3 % | 14.3 % | 5.1 % | $1,486 | 0.1 % | 2.6 % |
Cleveland, OH | $240,551 | 0.1 % | 4.2 % | 5.2 % | -4.6 % | $1,394 | 0.8 % | 5.0 % |
San Jose, CA | $1,585,426 | 0.6 % | -1.9 % | 6.3 % | 12.3 % | $3,431 | 0.7 % | 5.1 % |
Nashville, TN | $446,850 | -0.1 % | -0.9 % | 11.9 % | 2.5 % | $1,777 | 0.2 % | 0.2 % |
Virginia Beach, VA | $364,148 | 0.2 % | 2.0 % | 3.9 % | 0.8 % | $1,787 | 0.5 % | 5.7 % |
Providence, RI | $505,621 | 0.0 % | 2.7 % | -2.8 % | -10.5 % | $2,095 | 0.7 % | 4.8 % |
Jacksonville, FL | $348,117 | 0.2 % | -2.0 % | -8.2 % | 3.5 % | $1,666 | 0.5 % | 0.7 % |
Milwaukee, WI | $371,801 | 0.4 % | 5.3 % | 9.1 % | 5.7 % | $1,484 | 0.2 % | 3.5 % |
Oklahoma City, OK | $241,046 | 0.0 % | 1.3 % | 13.3 % | 2.6 % | $1,359 | 0.4 % | 2.6 % |
Raleigh, NC | $431,487 | 0.0 % | -2.4 % | 28.9 % | 4.0 % | $1,651 | 0.4 % | 0.2 % |
Memphis, TN | $241,793 | 0.2 % | -0.2 % | 10.5 % | 1.4 % | $1,421 | -0.2 % | 1.2 % |
Richmond, VA | $384,590 | 0.1 % | 1.8 % | 6.1 % | 3.1 % | $1,658 | 0.7 % | 3.9 % |
Louisville, KY | $274,455 | 0.4 % | 2.4 % | 19.0 % | 8.2 % | $1,361 | 0.0 % | 1.9 % |
New Orleans, LA | $257,238 | 0.7 % | 2.8 % | 2.0 % | -8.1 % | $1,577 | 0.3 % | 0.2 % |
Salt Lake City, UT | $558,316 | 0.1 % | 1.8 % | 16.6 % | 2.5 % | $1,599 | 0.1 % | -0.7 % |
Hartford, CT | $380,488 | 0.0 % | 4.9 % | -6.5 % | 4.9 % | $1,886 | -0.1 % | 2.5 % |
Buffalo, NY | $272,833 | -0.2 % | 3.9 % | 2.2 % | 11.3 % | $1,374 | 0.5 % | 3.6 % |
Birmingham, AL | $256,501 | 0.4 % | 1.4 % | 9.0 % | -9.6 % | $1,406 | 0.2 % | 1.6 % |
*Table ordered by market size
Forward-looking statements
This press release includes forward-looking statements about future housing market conditions, mortgage rates, rental trends and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions. Forward-looking statements speak only as of the date of this release, and Zillow Group undertakes no obligation to update them.
About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.
As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.
Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.
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FAQ**
How does Zillow Group Inc. ZG plan to sustain the momentum of rising existing home sales observed in February as the spring season approaches?
What specific factors contributed to the reduction in mortgage payments for buyers, and how might Zillow Group Inc. ZG leverage this to attract more homebuyers?
With new listings down year-over-year, what strategies will Zillow Group Inc. ZG implement to increase inventory and improve homeowner confidence in the housing market?
How does Zillow Group Inc. ZG anticipate that the psychological impact of sustained low mortgage rates will affect buyer behavior as we move into the spring buying season?
**MWN-AI FAQ is based on asking OpenAI questions about Zillow Group Inc. (NASDAQ: ZG).
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