The typical US home value during January was $358,968, according to data from Zillow (NASDAQ: Z, ZG). This marked a 0.4% drop from December, as well as a 0.2% uptick from January 2024.
January marked the sixth consecutive month that home values were down on month-over-month measurement.
Zillow also noted the monthly mortgage payment on a typical home is now $1,733, which 8.4% less expensive than one year ago. There were 1.11 million homes for sale nationwide in January and active inventory was 6% higher year-over-year; inventory levels dipped by a scant 0.1% from December.
“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. January was a cautious first step along that path, as potential buyers and sellers dealt with severe winter weather in many major markets. We expect sales to pick up as spring approaches. Housing affordability continues to improve for prospective homebuyers, while modest growth in the Zillow Observed Rent Index points to continued cooling in shelter inflation.”
