This spring, there are more opportunities for homebuyers than in previous years, according to a new Zillow study. With over a million homes for sale countrywide in February, the largest since before the epidemic, they have more options. Affordability is becoming better: Home values aren’t increasing quickly, and mortgage rates are at their lowest point of the year. Additionally, buyers now have more time to decide because the average home takes more than three weeks to enter into a contract.
“While affordability remains incredibly challenging, the housing market is improving for buyers nationally,” said Orphe Divounguy, Senior Economist at Zillow. “Some of the strongest buyers markets are in the Southeast, where builders have been able to keep up with demand. Sellers are still in the driver’s seat in the Northeast and in Northern California, where buyers are competing for the few homes that are available.”
In other regions of the nation, it’s even better for buyers. Customers have the ability to negotiate for a better price, and a greater percentage of sellers are lowering their pricing. However, sellers continue to hold the advantage in other areas. Bidding wars are driving sale prices substantially beyond asking prices, and homes in certain locations are going off the market in as little as seven days.
Key Highlights — National
- The typical U.S. home value is $357,377.
- The typical monthly mortgage payment, assuming 20% down, is $1,871.
- New listings increased by 2.8% month-over-month in February.
- New listings decreased by 4.7% this month compared to last year.
- New listings are -21.1% lower than pre-pandemic levels.
- Total inventory (the number of listings active at any time during the month) in February increased by 1.4% from last month.
- 21.6% of listings in February had a price cut. That is down 1.1ppts month-over-month.
- Newly pending listings increased by 9.1% in February from the prior month.
- Median days to pending, the typical time since initial list date for homes that went under contract in a month, is at 23 days in February, down 15 days since last month.
- Asking rents increased by 0.4% month-over-month in February. The pre-pandemic average for this time of year is 0.3%.
- Rents are now up 3.5% from last year.
Which U.S. Metros Boast the Best Price for Buyers?
In response to recent government changes, it may be difficult for a buyer or seller to know what to anticipate because of this severe mix of market conditions. But, there are some trends within the housing market that may allow Americans still on the hunt for a home to obtain homeownership.
The top five best metros for homebuyers are:
1. Miami: “Vice City”
This extreme mix of market conditions makes it hard for a buyer or seller to know what to expect. Zillow’s market heat index may be the first place buyers, sellers, and their brokers check to get a sense of how conversations might proceed in their metro area. Zillow has looked at key data indications to identify the top five major metro areas for home sales and purchases this spring.
- Median days on market: 60
- Share of listings with a price cut: 24.2%
2. New Orleans: “NOLA”
The Big Easy offers the greatest for-sale possibilities for those seeking a city with a rich history and a thriving culture. There are 11% more homes for sale now than there were last year, and there are a lot more properties on the market than there were before the pandemic. Additionally, properties in New Orleans remain on the market for nearly two months before entering into a contract, so there is no rush to buy.
- Inventory: Up 42% from pre-pandemic levels, and up 11.4% from last year
- Median days on market: 58
3. Jacksonville, FL: “River City”
Jacksonville offers buyers a great mix of alternatives and affordability. Compared to last year, there are 26% more houses for sale this year. With almost 30% of vendors lowering their asking price, buyers might also be able to score a bargain.
- Inventory: Up 26.3% year-over-year (YoY)
- Share of listings with a price cut: 28.8%
4. Tampa, FL: “The Lightening Capital of the World”
The prices of about one-third of Tampa’s for-sale listings were lowered. Additionally, property values have decreased by 3.6% from the previous year, making it marginally more affordable for purchasers to start the homeownership process. Additionally, there are more properties for sale for those purchasers to pick from. Compared to a year ago, inventory has increased by almost 20%.
- Inventory: Up 19.8% YoY
- Share of listings with a price cut: 31.9%
5. Memphis, TN: “Birth Place of Rock & Roll”
Americans may stay for the affordability and come for the live music in this notable metro. In Memphis, TN, owning is less expensive than renting on a monthly basis. In Memphis, the average monthly rent is over $1,400, and the average monthly mortgage payment is around $1,200. Additionally, purchasers have almost a month to select a house before a contract is signed.
Top five best metros for sellers:
1. Buffalo, NY: “The Queen City”
Buffalo is proving to be the 2025 hottest market according to Zillow. Competition for homes has increased due to a robust job market, especially from first-time buyers wishing to establish a home in upstate New York. The majority of sellers have a bidding war and find a buyer in 12 days or fewer. Over 50% of all listings sell for more than their list price.
- Median days on market: 12
- Share of listings sold above list price: 56%
- Zillow Home Value Index change: Up 5% YoY
2. San Jose, CA: “The Capital of Silicon Valley”
The nation’s most costly large metro area is becoming even more pricey. Nearly 60% of San Jose homes are selling for more than their market price, and home values have increased 7.6% from a year earlier. That’s a clear indication that bidders are vying for homes and snatching them up nine days after they go up for sale.
- Share of listings sold above list price: 57.1%
- Median days on market: 9
- Zillow Home Value Index change: Up 7.6% YoY
3. San Fransisco: “The Golden Gate City”
Although sellers are doing quite well in the Bay Area, San Francisco will present a little more of a challenge than nearby San Jose. Compared to last year, there are 32.5% more properties listed for sale, but 44% of all homes are selling for more than the asking price.
- Share of listings sold above list price: 44.4%
- Inventory: Up 32.5% YoY
4. Hartford, CT:
Sellers in Hartford had better be prepared to move. In just seven days, homes in the world’s insurance capital are going quickly off the market. That is over two weeks quicker than the national average for home sales. Because there aren’t many houses available, buyers move fast. This February, there were 71% fewer listings than prior to the outbreak. Consequently, property values have increased by almost 57% during that period and by 5.6% during the last 12 months.
- Median days on market: 7
- Inventory: Down 71.0% from pre-pandemic levels
- Zillow Home Value Index change: Up 5.6% YoY
5. Boston: “Beantown”
This well-liked metro area in the US frequently experiences bidding wars. Two out of five sellers should anticipate selling their house for more than their asking price if they receive multiple bids. This is one of the reasons why the Boston metro area’s property values are increasing twice as quickly as the national average. Additionally, homeowners may anticipate a quick sale—just eight days from listing to pending.
To read the full report, click here.
