Zillow Reports 1.8% Annual Rise in Home Sales, Payments Down 7.7%
Existing home sales rose 1.8% year over year in February while Zillow’s Home Value Index recorded a 0.4% annual gain and a 0.1% monthly increase. Lower mortgage rates lowered typical monthly payments by 7.7% and boosted buying power by about $30,000 for median-income households.
1. February Sales and Values
Existing home sales grew 1.8% year over year to 239,910 transactions in February, marking the first annual increase in seven months. The Zillow Home Value Index edged up 0.1% month over month to $361,371, representing a 0.4% gain from a year ago.
2. Affordability Gains
Lower mortgage rates reduced the typical monthly payment by 7.7% to $1,738, boosting buying power by about $30,000 for a median-income household. A sustained dip below 6% could entice both buyers and sidelined sellers back into the market.
3. Inventory and Listings Trends
Active inventory reached 1.12 million homes, up 5% annually and 0.4% from January, while new listings fell 3% year over year. Winter weather likely constrained supply but monitoring fresh listings will be key as buyers respond to improved affordability.