Prospective homebuyers have more options to choose from in the housing market, which could help spur sales this spring. Mortgage demand has been on the rise for two weeks in a row.
Inventory has been trending upward for the last two years despite persistently high mortgage rates, Mike Simonsen, president and founder of Altos Research, wrote on Monday.
New listings ticked up by 21% in February compared to last year, according to Zillow’s February report. New listings rose 20% from January, and each of the 50 largest U.S. metros experienced an increase in new listings.
Texas and Florida saw the biggest jump in new listings, year over year. Meanwhile, a Redfin report presented San Jose, California, Phoenix, Arizona, Las Vegas, Minneapolis, and Jacksonville, as the five metros with the largest gains in new listings.
Total inventory, including single-family homes and apartments, is up 12% nationally compared to last year, according to Zillow, reaching just over 900,000 housing units on the market. Dallas, Tampa, and Miami posted the largest annual increases.
Despite an influx of new listings, the market remains competitive for attractive, well-priced properties. Such homes went under contract typically after 17 days on the market. Meanwhile, a house stayed on the market for 53 days on average, according to Zillow. Additionally, 1 in 5 listings on Zillow posted a price cut in February.
The typical home in the U.S. was worth $349,216 in February, according to the Zillow Home Value Index. That’s up 4.2% compared to February of 2023. San Jose, San Diego, California, Seattle, San Francisco, and Washington, D.C. posted the largest monthly price gains.
