U.S. home values fell on a monthly basis for the sixth consecutive month in January, according to the Zillow® Home Value Index. This trend mirrors last year, when home values fell each month from August 2024 to February 2025. The monthly mortgage payment on a typical U.S. home is now 8.4% less expensive than a year ago, driven down primarily by lower mortgage rates.
New listings and the early read on sales both fell in January compared to last year, likely influenced by poor weather in much of the country, Zillow officials noted. Buyers are having an easier time than last year, they added, with homes on the market longer and fewer homes selling above list price.
"We're starting 2026 following three years that saw transactions bouncing along the bottom and affordability as a chronic struggle," said Mischa Fisher, chief economist at Zillow. "Our forecast for both sales and affordability this year is one of gradual improvement. … We expect sales to pick up as spring approaches.”
