Zillow's February Market Report points to spring rebound

Rhea-AI Summary

Zillow (NYSE:Z) reports signs of a spring rebound: the Zillow Home Value Index (ZHVI) rose 0.1% MoM and 0.4% YoY, typical U.S. home value is $361,371, and existing home sales improved 1.8% YoY in February.

Affordability improved: typical monthly mortgage payments fell 7.7% year over year and lower rates added about $30,000 in buying power for a median-income household.

Positive

• Existing home sales +1.8% YoY
• Typical mortgage payment -7.7% YoY improving affordability
• Active inventory +5% YoY increasing buyer options
• ZHVI +0.1% MoM, +0.4% YoY (typical home value $361,371)

Negative

• New listings -3% YoY potentially constraining fresh supply
• 20.3% of listings had price cuts, signaling ongoing seller pressure
• Several major metros show YoY value declines (examples include Austin -5.9% and Dallas -3.6%)

Key Figures

Typical U.S. home value: $361,371 Existing home sales YoY: 1.8% Monthly mortgage payment: $1,738 +5 more

8 metrics

Typical U.S. home value $361,371 Zillow Home Value Index, February

Existing home sales YoY 1.8% February existing home sales vs. prior year

Monthly mortgage payment $1,738 Typical U.S. home, 20% down, February

Mortgage payment YoY change -7.7% Typical U.S. home, vs. prior year

Homes for sale 1.12 million Active inventory, February nationwide

Homes sold 239,910 February sales count nowcast

Typical U.S. rent $1,895 Zillow Observed Rent Index, February

Rent YoY change 1.9% Nationwide typical rent vs. prior year

Market Reality Check

Price: $45.23 Vol: Volume 5,739,276 vs 20-da...

normal vol

$45.23 Last Close

Volume Volume 5,739,276 vs 20-day avg 6,602,483 (relative volume 0.87) ahead of this macro housing update. normal

Technical Shares at $45.23 are trading below the 200-day MA of $71.81, and remain 51.82% under the 52-week high and 7.92% above the 52-week low.

Peers on Argus

Z gained 3.88% with the housing report, while close peer ZG rose 7.11% and PINS ...

Z gained 3.88% with the housing report, while close peer ZG rose 7.11% and PINS gained 4.2%. Other peers like NBIS, BIDU, and TME were modestly positive, but no names appeared in the momentum scanner, supporting a stock-specific move linked to Zillow-branded housing data.

Historical Context

5 past events · Latest: Feb 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 23	AI investor summit	Positive	+2.1%	Announcement of AI Summit to showcase integrated transaction platform for investors.
Feb 23	Affordability report	Positive	-5.8%	Report showing higher home affordability from lower mortgage rates and incomes.
Feb 19	Google partnership	Neutral	-0.2%	Partnership to bring Zillow home-buying guidance into Google NotebookLM.
Feb 19	Conference appearance	Neutral	-0.2%	Planned presentation at Bernstein TMT Forum with CFO fireside chat.
Feb 19	Agent tech survey	Positive	+1.3%	Release of Agent Trends Survey highlighting AI use and upcoming Zillow Pro platform.

Pattern Detected

Recent Zillow news has produced mixed reactions, with some positive housing/AI updates sold off despite constructive fundamentals.

Recent Company History

Over the past few weeks, Zillow has highlighted both product innovation and housing-market insights. On Feb 23, it announced an AI Summit for Investors, with shares rising 2.1%. The same day, a report on improved buying power saw a -5.79% reaction despite favorable affordability metrics. Earlier in February, partnerships with Google NotebookLM and agent-focused tech/AI tools produced muted price moves. Today’s February Market Report extends this series of data-driven housing updates.

Market Pulse Summary

This announcement highlights early signs of a housing market rebound, with the typical U.S. home val...

Analysis

This announcement highlights early signs of a housing market rebound, with the typical U.S. home value at $361,371, existing home sales up 1.8% year over year, and the typical mortgage payment down 7.7%. It follows other Zillow research on affordability and AI-enabled tools. Investors may watch future reports for sustained sales and inventory trends, along with how Zillow’s product initiatives convert this improving environment into user engagement and transaction growth.

Key Terms

zillow home value index (zhvi), zillow observed rent index (zori), nowcast

3 terms

zillow home value index (zhvi) technical

"The Zillow Home Value Index (ZHVI) rose 0.1% month over month in February."

A Zillow Home Value Index (ZHVI) is a regularly updated measure that estimates the typical home price in a specific neighborhood, city, or region by combining public records, listings and recent sales into a single smoothed number. Investors use it like a thermometer for housing markets—tracking whether local prices are rising or falling helps assess real estate exposure, regional economic strength, mortgage risk and demand for related investments such as REITs or homebuilders.

zillow observed rent index (zori) technical

"The typical rent nationwide is $1,895, according to the Zillow Observed Rent Index (ZORI)."

The Zillow Observed Rent Index (ZORI) is a regularly updated measure of rent changes based on actual rental listings and transactions gathered from a large online housing platform. It shows how asking and achieved rents are rising or falling across cities and regions. Investors use it like a thermometer for the rental market: shifts in ZORI signal potential impacts on property owners’ income, housing-related companies, consumer spending, and inflation expectations.

nowcast technical

"239,910 homes were sold in February, according to the preliminary Zillow sales count nowcast."

A nowcast is a short-term, real-time estimate of the current state of an economy or market built from partial, quickly updated data—like a snapshot that fills in missing pieces before official reports arrive. Investors use nowcasts as an early read on trends such as growth, inflation, or employment because they can signal changes in asset prices sooner than waiting for delayed, formal statistics, much like checking live traffic before choosing a route.

AI-generated analysis. Not financial advice.

Existing home sales rose 1.8% year over year amid improved affordability

SEATTLE, March 4, 2026 /PRNewswire/ -- Home values rose for the first time in seven months and existing home sales improved from a year ago, according to the Zillow® February Market Report. The housing market is perking up as spring approaches, possibly foreshadowing a more active year for transactions after three low-volume years.

The improvement in existing home sales in February suggests January's weaker figures were likely influenced by severe winter weather, while improved affordability aligns with Zillow's forecast for increased activity this year. Lower mortgage rates have helped improve buying power by about $30,000 for a median-income household over the past year, while the typical mortgage payment is down 7.7% from a year ago, excluding taxes and insurance. A sustained dip for mortgage rates below 6% could provide a psychological boost that prompts more buyers and sellers to return to the market.

New listings fell 3% from a year earlier in February, as winter storms may have continued to disrupt activity. This will be an important metric to watch in the months ahead to track how many fresh options will be available to buyers benefiting from improved affordability.

"Zillow's latest data suggests buyers and sellers are starting to regain confidence. Existing home sales rose from a year ago, providing an early glimmer of hope that the housing market has turned a corner after three years bouncing along the bottom," said Mischa Fisher, chief economist at Zillow. "Buyers have more homes within reach to choose from to go along with these friendlier conditions. Lower mortgage rates will also encourage more homeowners who have felt locked in to sell as they will be better able to afford their next home."

Home Values & Mortgage Payments

• The typical U.S. home value is $361,371.
• The Zillow Home Value Index (ZHVI) rose 0.1% month over month in February. Home values are 0.4% higher than a year earlier.
• The monthly mortgage payment on a typical U.S. home is $1,738, assuming a 20% down payment and excluding taxes and insurance. That is 7.7% lower than last year.

Inventory

• There were 1.12 million homes for sale nationwide in February.
• Active inventory was 5% higher than a year earlier. Inventory rose 0.4% from January.
• New for-sale listings totaled 283,478 in February, down 3% from a year earlier and up 4.9% from January.

Sales

• 239,910 homes were sold in February, according to the preliminary Zillow sales count nowcast. That is 1.8% higher than a year earlier and up 13% from January. These figures will be revised mid-month.
• Newly pending listings, which measures listings that changed from for-sale to pending status rather than closed sales, shows 3.5% growth from a year earlier and an 11.1% increase over January.

Competition

• Homes took a median of 28 days to go pending in February. That was four days longer than a year earlier and 19 days shorter than January.
• The share of listings with a price cut in February was 20.3%. That was down 1.3 percentage points from a year earlier and down 1.7 percentage points from January.
• 20.4% of homes sold above list price in January, the most recent data available. That was 1.8 percentage points lower than a year earlier and 1.9 percentage points lower than December.

Rents

• The typical rent nationwide is $1,895, according to the Zillow Observed Rent Index (ZORI). That's 1.9% higher than a year earlier and up 0.4% from January, pointing to continued deceleration of rent growth.
• 39.2% of rental listings on Zillow offered a concession in February. That's 1.9 percentage points lower than a year earlier and up 0.3 percentage points from January.

Local data can be found on Zillow's market explorer. The Zillow March Market Report is expected to be released April 6.

Zillow February Market Report
Metro Area*	Typical Home Value (ZHVI)	Home Value Change: MoM	Home Value Change: YoY	Inventory Change: YoY	Sales Count Nowcast Change: YoY	Typical Rent (ZORI)	Rent Change: MoM	Rent Change: YoY
United States	$361,371	0.1 %	0.4 %	5.0 %	1.8 %	$1,895	0.4 %	1.9 %
New York, NY	$711,726	0.3 %	4.1 %	-2.5 %	-8.3 %	$3,258	0.5 %	4.2 %
Los Angeles, CA	$951,833	0.3 %	-0.5 %	6.0 %	-5.5 %	$2,884	0.2 %	1.1 %
Chicago, IL	$340,834	0.3 %	4.2 %	-4.4 %	-6.5 %	$2,132	0.9 %	5.5 %
Dallas, TX	$361,020	0.0 %	-3.6 %	5.2 %	-0.5 %	$1,630	0.3 %	0.2 %
Houston, TX	$304,131	-0.1 %	-2.0 %	14.7 %	4.9 %	$1,620	-0.1 %	-0.4 %
Washington, DC	$571,301	0.1 %	-0.6 %	16.3 %	-2.2 %	$2,331	0.5 %	0.2 %
Philadelphia, PA	$376,931	0.0 %	2.5 %	0.1 %	-8.9 %	$1,859	0.6 %	3.1 %
Miami, FL	$470,075	0.0 %	-3.9 %	-5.2 %	4.8 %	$2,654	0.2 %	0.5 %
Atlanta, GA	$375,728	0.0 %	-2.4 %	3.5 %	-3.0 %	$1,808	0.2 %	1.6 %
Boston, MA	$713,906	0.0 %	1.4 %	3.6 %	-1.4 %	$3,098	0.6 %	1.9 %
Phoenix, AZ	$446,190	0.1 %	-1.8 %	4.7 %	0.4 %	$1,724	0.4 %	-0.7 %
San Francisco, CA	$1,113,913	0.6 %	-2.0 %	-8.4 %	31.7 %	$3,103	1.1 %	6.3 %
Riverside, CA	$580,572	0.2 %	-1.5 %	-0.3 %	-4.3 %	$2,478	0.4 %	1.7 %
Detroit, MI	$259,012	0.1 %	2.9 %	14.1 %	-13.4 %	$1,461	0.2 %	2.4 %
Seattle, WA	$736,787	0.2 %	-1.8 %	28.4 %	-6.3 %	$2,181	0.2 %	1.8 %
Minneapolis, MN	$381,372	0.2 %	1.9 %	14.2 %	-1.5 %	$1,664	0.6 %	4.0 %
San Diego, CA	$926,935	0.4 %	-2.0 %	3.8 %	-0.5 %	$2,871	0.5 %	1.6 %
Tampa, FL	$355,768	0.1 %	-4.0 %	1.6 %	0.7 %	$1,976	0.3 %	-1.4 %
Denver, CO	$562,498	0.1 %	-3.1 %	9.7 %	1.9 %	$1,844	0.3 %	-1.0 %
Baltimore, MD	$395,198	0.1 %	0.7 %	11.1 %	6.7 %	$1,857	0.3 %	2.5 %
St. Louis, MO	$266,286	0.2 %	2.7 %	5.4 %	2.1 %	$1,395	0.2 %	3.5 %
Orlando, FL	$383,704	0.0 %	-3.6 %	-0.8 %	8.6 %	$1,922	0.3 %	0.2 %
Charlotte, NC	$382,994	0.0 %	-0.6 %	11.2 %	-5.8 %	$1,716	0.3 %	0.5 %
San Antonio, TX	$275,672	-0.1 %	-2.4 %	8.9 %	3.1 %	$1,392	0.2 %	-1.6 %
Portland, OR	$540,459	0.1 %	-1.1 %	14.4 %	-0.1 %	$1,779	0.3 %	0.9 %
Sacramento, CA	$571,639	0.1 %	-2.0 %	-3.5 %	-2.8 %	$2,211	0.2 %	2.1 %
Pittsburgh, PA	$221,878	-0.1 %	1.3 %	5.7 %	-10.6 %	$1,446	0.2 %	3.8 %
Cincinnati, OH	$300,802	0.2 %	2.4 %	8.4 %	6.9 %	$1,536	0.7 %	3.5 %
Austin, TX	$421,553	-0.1 %	-5.9 %	4.4 %	2.0 %	$1,563	0.5 %	-2.4 %
Las Vegas, NV	$427,252	-0.1 %	-2.8 %	12.8 %	-8.2 %	$1,720	0.4 %	-0.1 %
Kansas City, MO	$317,307	0.3 %	3.1 %	10.0 %	21.9 %	$1,481	0.4 %	3.5 %
Columbus, OH	$322,372	0.2 %	1.1 %	5.7 %	1.0 %	$1,484	0.5 %	1.7 %
Indianapolis, IN	$287,261	0.1 %	1.3 %	14.3 %	5.1 %	$1,486	0.1 %	2.6 %
Cleveland, OH	$240,551	0.1 %	4.2 %	5.2 %	-4.6 %	$1,394	0.8 %	5.0 %
San Jose, CA	$1,585,426	0.6 %	-1.9 %	6.3 %	12.3 %	$3,431	0.7 %	5.1 %
Nashville, TN	$446,850	-0.1 %	-0.9 %	11.9 %	2.5 %	$1,777	0.2 %	0.2 %
Virginia Beach, VA	$364,148	0.2 %	2.0 %	3.9 %	0.8 %	$1,787	0.5 %	5.7 %
Providence, RI	$505,621	0.0 %	2.7 %	-2.8 %	-10.5 %	$2,095	0.7 %	4.8 %
Jacksonville, FL	$348,117	0.2 %	-2.0 %	-8.2 %	3.5 %	$1,666	0.5 %	0.7 %
Milwaukee, WI	$371,801	0.4 %	5.3 %	9.1 %	5.7 %	$1,484	0.2 %	3.5 %
Oklahoma City, OK	$241,046	0.0 %	1.3 %	13.3 %	2.6 %	$1,359	0.4 %	2.6 %
Raleigh, NC	$431,487	0.0 %	-2.4 %	28.9 %	4.0 %	$1,651	0.4 %	0.2 %
Memphis, TN	$241,793	0.2 %	-0.2 %	10.5 %	1.4 %	$1,421	-0.2 %	1.2 %
Richmond, VA	$384,590	0.1 %	1.8 %	6.1 %	3.1 %	$1,658	0.7 %	3.9 %
Louisville, KY	$274,455	0.4 %	2.4 %	19.0 %	8.2 %	$1,361	0.0 %	1.9 %
New Orleans, LA	$257,238	0.7 %	2.8 %	2.0 %	-8.1 %	$1,577	0.3 %	0.2 %
Salt Lake City, UT	$558,316	0.1 %	1.8 %	16.6 %	2.5 %	$1,599	0.1 %	-0.7 %
Hartford, CT	$380,488	0.0 %	4.9 %	-6.5 %	4.9 %	$1,886	-0.1 %	2.5 %
Buffalo, NY	$272,833	-0.2 %	3.9 %	2.2 %	11.3 %	$1,374	0.5 %	3.6 %
Birmingham, AL	$256,501	0.4 %	1.4 %	9.0 %	-9.6 %	$1,406	0.2 %	1.6 %

*Table ordered by market size 

Forward-looking statements
This press release includes forward-looking statements about future housing market conditions, mortgage rates, rental trends and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions. Forward-looking statements speak only as of the date of this release, and Zillow Group undertakes no obligation to update them.

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

Zillow Group's affiliates, subsidiaries and brands include Zillow^®, Zillow Premier Agent^®, Zillow Home Loans^®, Zillow Rentals^®, Zillow^® New Construction, Trulia^®, StreetEasy^®, Out East^®, HotPads^®, Follow Up Boss^®, ShowingTime^®, dotloop^® and Zillow^® Closing.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

 

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SOURCE Zillow

FAQ

What did Zillow report for U.S. home values in the February 2026 market report (Z)?

U.S. typical home value is $361,371, with the ZHVI up 0.1% MoM and 0.4% YoY. According to Zillow, this is the first month values rose after seven months of declines, signaling early market stabilization.

How did Zillow say affordability changed in February 2026 and what does that mean for buyers (Z)?

Affordability improved as typical mortgage payments fell 7.7% YoY, giving median-income households about $30,000 more buying power. According to Zillow, lower mortgage rates have reduced monthly payments and could encourage more buyers to enter the market.

What does Zillow report about inventory and new listings in February 2026 (Z)?

There were 1.12 million homes for sale and active inventory was 5% higher YoY, while new for-sale listings fell 3% YoY. According to Zillow, higher active inventory but fewer new listings may shape buyer choices this spring.

How did existing home sales perform in Zillow's February 2026 report (Z)?

Existing home sales rose 1.8% YoY with a preliminary sales nowcast of 239,910 homes sold. According to Zillow, this uptick suggests January’s weakness was weather-related and points to a potential seasonal rebound.

What signs of competition or pricing pressure did Zillow note in February 2026 (Z)?

Homes took a median of 28 days to go pending and 20.3% of listings had price cuts, while 20.4% sold above list in January. According to Zillow, these metrics show softer competition but improving momentum.

Which metro areas showed notable February 2026 shifts in Zillow's report (Z)?

Some metros had large shifts: San Francisco sales nowcast rose 31.7% YoY, while Austin home values fell 5.9% YoY. According to Zillow, local markets remain heterogeneous, with strong variation across metros.