Existing home sales increased 1.8% from a year ago and home values rose 0.4% year over year, “possibly foreshadowing a more active year for transactions after three low-volume years,” according to Zillow’s February Market Report. The change in home values marks the first increase in the last seven months, valuing the typical U.S. home at $361,371.
Lower mortgage rates have helped improve buying power by about $30,000 for a median-income household over the past year, Zillow reported, while the typical mortgage payment is down 7.7% from a year ago, excluding taxes and insurance.
New listings fell 3% from a year earlier in February, as winter storms may have continued to disrupt activity.
Improvement in existing home sales along with lower mortgage rates align with Zillow’s forecast for increased market activity for 2026.
"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 Zillow’s chief economist Mischa Fisher. "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."
Read the full report here.
