Mortgage rates have dipped to their lowest levels since December, offering buyers some much-needed relief as affordability remains a key challenge. With 1.04 million homes on the market in February — the highest inventory for this time of year since 2020 — buyers have more options than they’ve seen in years, according to Zillow's latest market report.
At the same time, home value growth has slowed to just 2.1% year-over-year, marking the weakest price appreciation in 18 months. Properties are also spending more time on the market, with listings taking an average of 23 days to go pending, a pace not seen since before the pandemic.
Where’s the Housing Market Heat? Maybe March
If you were waiting for a big February rebound in real estate, well, you’re still waiting. Buyers didn’t flood in. Sellers didn’t rush to list. The usual early-year momentum? Nowhere to be found.
But March? That’s a different story.
Mortgage rates have been sliding downward — not a freefall, but enough to make a serious dent in monthly payments. In February, rates dropped by roughly 0.25 percentage points, and the downward trend has continued into March, marking the lowest rates since December. For a buyer, that could mean saving hundreds per month on a mortgage.
With affordability still a massive challenge, these lower rates might finally shake up the market.
"Rate dips tend to energize buyers and sellers both; if they continue or hold, we should see more activity," says Skylar Olsen, Zillow’s chief economist. "Economic uncertainty is a counterbalance, one that will be felt in some areas of the country more than others. People tend to shelter in place when the future of their job or industry is uncertain."
Buyers Have More Choices (And More Time to Decide)
For those house-hunting, selection hasn’t been this good in five years.
- 1.04 million homes were on the market last month, a 15% jump from last year.
- Despite more overall inventory, new listings actually dropped 4.7% year-over-year.
- Homes are sitting on the market longer — 23 days on average before going pending, six days longer than last year.
That last number is key: in the height of the pandemic frenzy, homes would fly off the market in days. Now? Buyers can actually breathe, compare, and negotiate without fearing they’ll miss out in an instant.
But sellers aren’t losing all their power. Zillow data suggests the best time to sell is right now through July, meaning those who price smartly can still land a solid deal.
Who’s Winning: Buyers or Sellers? It Depends on the City.
On a national level, the market is balanced — neither buyers nor sellers have a clear advantage, something we haven’t seen since 2019. But zoom in, and it’s a different story.
🔥Seller’s Markets (High Demand, Fewer Homes for Sale):
- San Jose, Calif. – Home prices up 7.6% YoY, strong demand.
- San Francisco, Calif. – Up 2.4% YoY, still a tough market for buyers.
- Washington, D.C. – Inventory up 20.4%, but still favoring sellers.
- Boston, Mass. – Classic Northeast demand keeps sellers in control.
- New York, N.Y. – Prices up 5.6%, homes selling fast.
✅ Buyer’s Markets (More Supply, Less Pressure):
- Miami, Fla. – Home values actually down 0.2%, with inventory up 23.7%.
- New Orleans, La. – Another price drop, -1.7% YoY, good for buyers.
- Jacksonville, Fla. – More homes, 26.3% increase in inventory.
- Tampa, Fla. – Home prices down 3.6%, more room to negotiate.
- Memphis, Tenn. – More listings, giving buyers an edge.
