Sales are ramping up while sellers take
another step back
- Home values are up 1% from March to April, the largest jump
since June and in line with historical norms.
- Pending sales are gaining ground on 2022 figures, now standing
21% below last April.
- The drought in new listings is deepening, with 28% fewer new
listings than last year.
SEATTLE, May 10, 2023
/PRNewswire/ -- The housing market has tilted firmly back in
favor of sellers, as steady demand met scarce inventory to drive up
home values, according to the latest market report from
Zillow®.
"Buyers are back on the hunt for houses in what is typically the
hottest time of year, thanks to a normal seasonal surge in demand
around the end of the school year and some help from slightly lower
mortgage rates," said Jeff Tucker,
Zillow senior economist. "Unfortunately, many potential sellers
have ghosted the market this spring, concentrating buyer demand on
the few listings that do come to market and fueling price growth,
especially for more affordable and well-presented
houses."
The value of the typical home climbed 1% from March to April,
the strongest monthly appreciation since last June and in line with
pre-pandemic norms for this time of year. Still, a "normal"
springtime sellers season represents a remarkable turnaround from
the second half of 2022, which was much cooler than normal as
buyers retreated in the face of affordability challenges.
Although still 2.2% below their peak last July, typical home
values are 1.5% above last April and stand 38% higher than 2020.
Increased competition at lower price points is driving far higher
annual appreciation for the least expensive houses.
From hot to not, and back again — local home value
trends
The relatively affordable Midwest and Great Lakes
regions led the nation in appreciation, harboring the top nine
major metros for monthly home value gains. Kansas City home values grew fastest for the
second month in a row, followed by Columbus, Detroit, Buffalo and Cincinnati.
Buyers should expect extremely tough competition in these areas
— median time to pending for a new listing in Kansas City, Columbus and Cincinnati is just three days.
Home values are down year over year in 22 major markets, most
significantly in Austin
(-10%), San Francisco
(-9.9%), San Jose (-9.5%) and
Seattle (-7.5%). But all of these
markets posted monthly gains, with San
Jose, San Francisco and
Seattle outpacing the national
average. These West Coast markets experienced some of the biggest
contractions in the flow of new listings, helping to explain why
their price declines have reversed.
The drought of new listings deepens
Shoppers are
seeing fewer fresh listings to tour as sellers have stepped back
even further. The flow of new listings to the market decreased in
April, defying the normal trend of rising through the spring and
deepening the year-over-year deficit in new listings.
Total inventory is up just 3% annually and now stands 46% lower
than in 2019.
Buyers are still scooping up what they can find, but a lack of
choices may be holding them back. Newly pending sales rose 2% from
March — a smaller monthly increase than historical norms.
Affordability is likely to improve, but buyers shouldn't
expect a return to pre-pandemic costs
Massive home price
appreciation, combined with mortgage rates that doubled in 2022,
has made both down payments and monthly mortgage costs much tougher
to afford. A new Zillow forecast expects affordability to
improve slightly over the next year, but high demand for homes and
stubbornly low supply will prevent a return to pre-pandemic
norms.
Buyers looking for ways to lower costs can use Zillow to check
their eligibility for down payment assistance programs and
explore whether buying points or negotiating a seller-financed 2/1
buydown makes sense using a new break-even calculator.
Rents are firmly back in growth territory
Asking rents
climbed 0.6% month over month, a nearly normal monthly growth rate
for this time of year. Rents are now 5.3% higher than in April of
last year. See Zillow's Rental Market Report for more
details.
|
Metropolitan
Area*
|
April Zillow
Home Value
Index
(ZHVI)
(Raw)
|
ZHVI
Change,
Month
over
Month
(MoM)
|
Newly
Pending
Sales
Change,
MoM
|
New
Inventory
Change,
MoM
|
New
Inventory
Change,
YoY
|
Total
Inventory
Change,
YoY
|
Median
Days on
Market
|
|
United
States
|
$339,366
|
1.0 %
|
2 %
|
-1 %
|
-28 %
|
3 %
|
10
|
|
New York, NY
|
$579,598
|
0.9 %
|
-7 %
|
-5 %
|
-33 %
|
-17 %
|
22
|
|
Los Angeles,
CA
|
$869,870
|
1.1 %
|
-3 %
|
-4 %
|
-38 %
|
-13 %
|
13
|
|
Chicago, IL
|
$295,512
|
1.5 %
|
0 %
|
1 %
|
-32 %
|
-18 %
|
6
|
|
Dallas, TX
|
$371,402
|
0.8 %
|
9 %
|
9 %
|
-13 %
|
33 %
|
9
|
|
Houston, TX
|
$301,959
|
0.5 %
|
-2 %
|
-6 %
|
-24 %
|
17 %
|
14
|
|
Washington,
DC
|
$539,836
|
1.2 %
|
7 %
|
-4 %
|
-39 %
|
-25 %
|
5
|
|
Philadelphia,
PA
|
$334,022
|
1.3 %
|
1 %
|
-2 %
|
-33 %
|
-15 %
|
7
|
|
Miami, FL
|
$456,972
|
1.1 %
|
-14 %
|
-13 %
|
-23 %
|
31 %
|
25
|
|
Atlanta, GA
|
$365,988
|
0.8 %
|
-8 %
|
-10 %
|
-35 %
|
-2 %
|
11
|
|
Boston, MA
|
$630,675
|
1.4 %
|
10 %
|
-7 %
|
-32 %
|
-15 %
|
7
|
|
Phoenix, AZ
|
$434,351
|
0.3 %
|
-2 %
|
-6 %
|
-38 %
|
15 %
|
27
|
|
San Francisco,
CA
|
$1,114,090
|
1.3 %
|
0 %
|
4 %
|
-40 %
|
-23 %
|
12
|
|
Riverside,
CA
|
$545,392
|
0.5 %
|
1 %
|
-1 %
|
-42 %
|
-4 %
|
16
|
|
Detroit, MI
|
$237,845
|
1.7 %
|
10 %
|
10 %
|
-28 %
|
-7 %
|
6
|
|
Seattle, WA
|
$688,330
|
1.2 %
|
3 %
|
-9 %
|
-47 %
|
-24 %
|
6
|
|
Minneapolis,
MN
|
$365,884
|
1.4 %
|
6 %
|
6 %
|
-37 %
|
-21 %
|
11
|
|
San Diego,
CA
|
$852,535
|
1.3 %
|
-5 %
|
-5 %
|
-44 %
|
-23 %
|
8
|
|
Tampa, FL
|
$367,405
|
0.7 %
|
-5 %
|
-4 %
|
-24 %
|
32 %
|
13
|
|
Denver, CO
|
$585,890
|
1.2 %
|
9 %
|
-5 %
|
-32 %
|
1 %
|
6
|
|
Baltimore,
MD
|
$362,891
|
1.5 %
|
7 %
|
-1 %
|
-35 %
|
-19 %
|
5
|
|
St. Louis,
MO
|
$235,377
|
1.6 %
|
10 %
|
1 %
|
-21 %
|
-5 %
|
5
|
|
Orlando, FL
|
$382,441
|
0.7 %
|
-4 %
|
-5 %
|
-26 %
|
18 %
|
12
|
|
Charlotte,
NC
|
$364,704
|
0.8 %
|
2 %
|
-11 %
|
-36 %
|
16 %
|
8
|
|
San Antonio,
TX
|
$292,170
|
0.5 %
|
-5 %
|
-2 %
|
-20 %
|
43 %
|
17
|
|
Portland, OR
|
$543,783
|
1.3 %
|
8 %
|
7 %
|
-37 %
|
-13 %
|
7
|
|
Sacramento,
CA
|
$555,516
|
0.8 %
|
6 %
|
15 %
|
-40 %
|
-21 %
|
8
|
|
Pittsburgh,
PA
|
$198,241
|
1.2 %
|
10 %
|
1 %
|
-19 %
|
-1 %
|
7
|
|
Cincinnati,
OH
|
$265,149
|
1.6 %
|
9 %
|
-1 %
|
-30 %
|
-15 %
|
3
|
|
Austin, TX
|
$481,100
|
0.6 %
|
4 %
|
-4 %
|
-18 %
|
47 %
|
31
|
|
Las Vegas,
NV
|
$396,518
|
0.3 %
|
-3 %
|
0 %
|
-41 %
|
12 %
|
19
|
|
Kansas City,
MO
|
$291,645
|
1.9 %
|
16 %
|
2 %
|
-28 %
|
-9 %
|
3
|
|
Columbus, OH
|
$299,146
|
1.7 %
|
14 %
|
10 %
|
-27 %
|
-10 %
|
3
|
|
Indianapolis,
IN
|
$268,799
|
1.3 %
|
-1 %
|
0 %
|
-24 %
|
0 %
|
5
|
|
Cleveland,
OH
|
$211,672
|
1.6 %
|
4 %
|
-2 %
|
-29 %
|
-8 %
|
5
|
|
San Jose, CA
|
$1,427,207
|
1.5 %
|
11 %
|
-2 %
|
-45 %
|
-31 %
|
15
|
|
Nashville,
TN
|
$427,662
|
0.7 %
|
9 %
|
1 %
|
-21 %
|
35 %
|
11
|
|
Virginia Beach,
VA
|
$327,541
|
1.0 %
|
-5 %
|
-4 %
|
-34 %
|
-16 %
|
16
|
|
Providence,
RI
|
$436,070
|
1.0 %
|
10 %
|
5 %
|
-32 %
|
-18 %
|
7
|
|
Jacksonville,
FL
|
$355,946
|
0.5 %
|
-7 %
|
-9 %
|
-29 %
|
37 %
|
30
|
|
Milwaukee,
WI
|
$310,663
|
1.6 %
|
0 %
|
13 %
|
-31 %
|
-27 %
|
6
|
|
Oklahoma City,
OK
|
$226,338
|
1.5 %
|
2 %
|
0 %
|
-16 %
|
23 %
|
7
|
|
Raleigh, NC
|
$423,657
|
0.6 %
|
0 %
|
-8 %
|
-30 %
|
5 %
|
6
|
|
Memphis, TN
|
$230,349
|
0.6 %
|
0 %
|
-3 %
|
-17 %
|
18 %
|
20
|
|
Richmond, VA
|
$347,421
|
1.3 %
|
13 %
|
5 %
|
-26 %
|
-16 %
|
5
|
|
Louisville,
KY
|
$246,920
|
1.3 %
|
49 %
|
1 %
|
-29 %
|
-2 %
|
6
|
|
New Orleans,
LA
|
$234,608
|
-0.1 %
|
-8 %
|
-7 %
|
-20 %
|
35 %
|
21
|
|
Salt Lake City,
UT
|
$537,915
|
1.1 %
|
1 %
|
6 %
|
-36 %
|
4 %
|
8
|
|
Hartford, CT
|
$322,762
|
1.2 %
|
23 %
|
9 %
|
-36 %
|
-30 %
|
5
|
|
Buffalo, NY
|
$243,449
|
1.7 %
|
-1 %
|
6 %
|
-22 %
|
-10 %
|
9
|
|
Birmingham,
AL
|
$242,537
|
0.8 %
|
4 %
|
4 %
|
-23 %
|
7 %
|
8
|
|
|
*Table ordered by
market size
|
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
website in the United States,
Zillow and its affiliates help people find and get the home they
want by connecting them with digital solutions, great partners, and
easier buying, selling, financing and renting
experiences.
Zillow Group's affiliates, subsidiaries and brands include
Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Zillow Closing
Services℠; Trulia®; Out East®; StreetEasy®; HotPads®; and
ShowingTime+℠, which includes ShowingTime®, Bridge
Interactive®, and dotloop®.
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). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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