Zillow Group (NASDAQ:Z, ZG) reported new listings of existing homes on its platform were up 21% year-over-year in February, which followed a 20% annual uptick in January.
Zillow noted new listings were up from one year ago in all of the nation’s 50 largest metros, especially Texas and Florida where new construction is also on the rise. Total inventory is up 12% nationally compared to last year – and with just over 900,000 properties available, Zillow noted there were more homes for sale in February than in any February since 2020.
At the same time, homes that went under contract in February at an average of after 17 days, slower than the pace recorded in 2021 and 2022 but far faster than before the pandemic. And price cuts are more common than normal, with one in five listings on Zillow are seeing listing reductions.
Typical home values are up from last year in all but three major metros, and values have risen 41% nationwide since before the pandemic. The typical home in the U.S. was worth $349,216 last month, according to the Zillow Home Value Index, which is up 40.8% compared to the pre-pandemic period. 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%).
“For more than a year, Zillow homeowner surveys have shown an elevated share of homeowners expecting to sell in the next three years,” said Skylar Olsen, chief economist at Zillow. “We’re finally beginning to see owners who have been putting off moves return to the market. For many households with record-high equity, waiting out potentially lower rates later in the year may not be worth it.”
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