An improvement in the pace of existing-home sales in February led economists at Zillow to conclude in a new batch of monthly data that the sales pullback in January primarily reflected several weeks of severe winter weather affecting the country.
Home values rose “for the first time in seven months,” the listings platform also noted in its February Market Report, which tracks various measures of housing activity. The 1.8% increase in existing-home sales last month came as new listings declined by 3%, signaling ongoing turbulence in an uneven inventory recovery.
Nevertheless, mortgage rates near multiyear lows have yielded critical purchasing power to marginal first-time homebuyers who can now at least access the market. That’s in addition to a portion of existing homeowners who may become sellers — and confront the reality of replacing their low-rate pandemic-era mortgage.
“Zillow’s latest data suggests buyers and sellers are starting to regain confidence,” said Mischa Fisher, chief economist at Zillow. “Buyers have more homes within reach to choose from to go along with these friendlier conditions.”
The company pegged the typical U.S. home value at $361,371 in February, up 0.1% over the month and 0.4% higher over the year. The company also estimated that the principal and interest portion of typical mortgage payments was 7.7% lower than a year ago in February at $1,738 assuming a 20% downpayment.
That typical principal and interest payment compares to a typical nationwide rent of $1,895 last month, according to Zillow’s Observed Rent Index. Decelerating rent appreciation remains a feature of the broader market, as other recent housing reports have noted.
Overall, Zillow reported there were 1.12 million homes for sale nationwide in February as active inventory sat at levels 5% higher than a year ago. Inventory improved by a slight 0.4% from January. New for-sale listings were down 3% from a year earlier in February, however.
Despite mixed signals for housing heading into the spring and summer months, Zillow expects 2026 “to be the first year of meaningful sales growth since 2021.”
