Inventory and new listings are rising nationwide, while price
cuts hit a seasonal high point
- Zillow's new market heat index shows seven of the top 10
markets for buyers are in Florida
or Texas.
- Buffalo, the Bay Area and the Northeast rank among the best
areas for sellers.
- High rates and more homes are easing competition, but sellers
maintain a slight edge nationwide.
SEATTLE, May 15, 2024
/PRNewswire/ -- Texas and
Florida metros dominate the best
places for buyers in Zillow's new market heat index, securing seven
of the top 10 spots. But most of the country's 50 largest metros —
and the U.S. at large — favor sellers, according to the latest
market report1 from Zillow®.
"Prospective buyers in most markets today are feeling less
intense competition than in recent spring shopping seasons.
Pressure is easing up as mortgage rates raise costs and sellers
return," said Skylar Olsen, Zillow
chief economist. "However, the pool of homes for sale remains
remarkably low. This means the nation remains a seller's market
despite high mortgage rates — homes are selling faster, with more
buyer interest over any one listing, than pre-pandemic."
Strong construction in Texas
and Florida has helped restore
inventory levels in those states, easing competition. Austin and San
Antonio are two of just three markets with more inventory
now than before the pandemic, while Tampa, Orlando and Jacksonville have among the smallest
deficits.
The top market for sellers is Buffalo,
New York, forecast by Zillow in January as the hottest
market of 2024. Among the top metros for sellers are more expensive
(and inventory-constrained) coastal tech hubs, relatively
affordable spillover markets in the Northeast — Hartford and Providence — and hot Upper Midwest metros
Milwaukee and
Minneapolis.
Zillow's new market heat index visually represents buyers'
urgency or sellers' confidence in an area and shows how that's
changed over time. It takes into account the share of homes
that sell quickly, the share of homes with a price cut, and buyer
engagement with active Zillow listings in a market.
Springtime competition coasts as costs and inventory
rise
Both inventory and new listings posted solid gains monthly and
compared to last year. Buyers had a lot more options to choose
from, as inventory rose 6.4% from March to April and climbed 18%
over last year, the second-largest annual increase since at least
2019. They also had more fresh options, with new listings up nearly
11% month over month and rising almost 16% year over year. Despite
April's improvement, total inventory sits 36% below pre-pandemic
norms.
Mortgage rates that spiked above 7% for the first time this
year, along with these infusions of inventory, held competition
steady at a time of year when it normally ramps up.
U.S. home values grew 1.2% from March to April and are 4.4%
higher than a year ago. That's a slight slowdown from 4.6% annual
growth seen last month. The typical U.S. home is now worth
$359,402.
The share of listings with a price cut reached 22.4% in April,
the highest rate for April in the past six years and a significant
step up from 17.2% last year. Price cuts can be a sign of weakening
demand that foretells softer price growth ahead, or they can be a
natural process of feeling the market out as sellers and their
agents come up with their pricing strategy. The latter scenario
becomes more likely in a rapidly changing market like we see today,
with relatively few recent sales to look at as comps.
Homes that sold in April sold in 13 days, which is fast by
historical standards. However, that is three days slower than last
April, the first time since June 2023
that the speed of sales fell behind the previous year's pace.
Size
rank
|
Metropolitan
Area
|
April Zillow
Home Value
Index (ZHVI) (Raw)
|
ZHVI Change,
Year over Year (YoY)
|
Zillow Market Heat
Index *
|
Market Favors
(Based on Index Value)
|
Share of
Listings
with a Price Cut
|
Inventory
Change, YoY
|
New Inventory
Change, YoY
|
0
|
United
States
|
$359,402
|
4.4 %
|
60.3
|
Seller's
|
22.4 %
|
18.0 %
|
15.5 %
|
46
|
New Orleans,
LA
|
$242,593
|
-7.0 %
|
39.1
|
Buyer's
|
26.5 %
|
22.4 %
|
8.9 %
|
8
|
Miami, FL
|
$489,836
|
7.3 %
|
39.2
|
Buyer's
|
24.6 %
|
41.3 %
|
27.2 %
|
18
|
Tampa, FL
|
$381,137
|
3.5 %
|
43.7
|
Buyer's
|
35.6 %
|
50.1 %
|
23.0 %
|
39
|
Jacksonville,
FL
|
$359,942
|
1.7 %
|
44.3
|
Buyer's
|
30.8 %
|
37.2 %
|
27.5 %
|
43
|
Memphis, TN
|
$241,995
|
2.1 %
|
45.4
|
Neutral
|
24.6 %
|
25.0 %
|
11.8 %
|
22
|
Orlando, FL
|
$397,716
|
4.0 %
|
49.2
|
Neutral
|
29.0 %
|
41.6 %
|
20.2 %
|
24
|
San Antonio,
TX
|
$290,355
|
-1.8 %
|
51.7
|
Neutral
|
30.0 %
|
27.4 %
|
11.5 %
|
29
|
Austin, TX
|
$468,707
|
-3.6 %
|
52.1
|
Neutral
|
26.5 %
|
11.5 %
|
19.1 %
|
5
|
Houston, TX
|
$311,004
|
2.1 %
|
54.9
|
Neutral
|
28.0 %
|
21.4 %
|
17.0 %
|
9
|
Atlanta, GA
|
$386,193
|
4.7 %
|
54.9
|
Neutral
|
25.5 %
|
32.3 %
|
34.3 %
|
41
|
Oklahoma City,
OK
|
$235,737
|
3.1 %
|
55.3
|
Neutral
|
25.3 %
|
23.1 %
|
14.3 %
|
36
|
Nashville,
TN
|
$442,844
|
2.3 %
|
56.9
|
Seller's
|
30.2 %
|
10.2 %
|
16.0 %
|
50
|
Birmingham,
AL
|
$252,777
|
0.6 %
|
57.9
|
Seller's
|
22.1 %
|
17.7 %
|
10.5 %
|
11
|
Phoenix, AZ
|
$461,258
|
4.6 %
|
58.2
|
Seller's
|
34.2 %
|
4.0 %
|
20.0 %
|
23
|
Charlotte,
NC
|
$384,502
|
5.4 %
|
59.1
|
Seller's
|
22.7 %
|
13.3 %
|
23.9 %
|
30
|
Las Vegas,
NV
|
$426,094
|
6.5 %
|
62.9
|
Seller's
|
21.7 %
|
-6.8 %
|
15.5 %
|
33
|
Indianapolis,
IN
|
$281,348
|
3.9 %
|
63.2
|
Seller's
|
26.3 %
|
14.8 %
|
8.0 %
|
45
|
Louisville,
KY
|
$257,655
|
4.2 %
|
63.3
|
Seller's
|
21.8 %
|
11.4 %
|
18.7 %
|
4
|
Dallas, TX
|
$380,818
|
1.8 %
|
63.5
|
Seller's
|
29.1 %
|
30.5 %
|
16.4 %
|
13
|
Riverside,
CA
|
$582,574
|
6.8 %
|
64.9
|
Seller's
|
21.2 %
|
14.6 %
|
21.5 %
|
37
|
Virginia Beach,
VA
|
$350,606
|
6.3 %
|
66.4
|
Seller's
|
17.2 %
|
11.3 %
|
8.5 %
|
42
|
Raleigh, NC
|
$445,842
|
3.5 %
|
68.9
|
Strong
seller's
|
26.7 %
|
21.6 %
|
27.8 %
|
7
|
Philadelphia,
PA
|
$361,244
|
7.7 %
|
69.5
|
Strong
seller's
|
19.3 %
|
-0.2 %
|
7.8 %
|
27
|
Pittsburgh,
PA
|
$214,575
|
6.2 %
|
69.6
|
Strong
seller's
|
21.3 %
|
-1.8 %
|
3.5 %
|
19
|
Denver, CO
|
$596,265
|
2.6 %
|
69.9
|
Strong
seller's
|
28.8 %
|
20.2 %
|
23.8 %
|
20
|
Baltimore,
MD
|
$385,429
|
4.5 %
|
70.2
|
Strong
seller's
|
21.8 %
|
3.5 %
|
5.1 %
|
47
|
Salt Lake City,
UT
|
$548,265
|
2.9 %
|
70.3
|
Strong
seller's
|
26.5 %
|
14.0 %
|
18.1 %
|
28
|
Cincinnati,
OH
|
$284,510
|
6.1 %
|
70.4
|
Strong
seller's
|
21.1 %
|
8.8 %
|
10.9 %
|
14
|
Detroit, MI
|
$253,228
|
7.1 %
|
71.3
|
Strong
seller's
|
17.4 %
|
0.5 %
|
6.3 %
|
17
|
San Diego,
CA
|
$964,659
|
12.0 %
|
74
|
Strong
seller's
|
18.9 %
|
29.2 %
|
30.6 %
|
3
|
Chicago, IL
|
$320,798
|
7.7 %
|
75
|
Strong
seller's
|
18.8 %
|
-0.9 %
|
10.6 %
|
26
|
Sacramento,
CA
|
$585,640
|
4.5 %
|
76
|
Strong
seller's
|
21.5 %
|
10.2 %
|
16.0 %
|
25
|
Portland, OR
|
$552,452
|
2.3 %
|
76.5
|
Strong
seller's
|
22.3 %
|
18.9 %
|
16.1 %
|
21
|
St. Louis,
MO
|
$252,191
|
5.4 %
|
76.8
|
Strong
seller's
|
19.1 %
|
12.1 %
|
14.0 %
|
31
|
Kansas City,
MO
|
$304,718
|
4.8 %
|
76.9
|
Strong
seller's
|
22.2 %
|
19.3 %
|
16.4 %
|
32
|
Columbus, OH
|
$314,393
|
6.4 %
|
77.2
|
Strong
seller's
|
21.3 %
|
13.9 %
|
10.0 %
|
2
|
Los Angeles,
CA
|
$964,981
|
9.4 %
|
80.1
|
Strong
seller's
|
15.0 %
|
11.7 %
|
26.0 %
|
44
|
Richmond, VA
|
$369,231
|
5.8 %
|
81.1
|
Strong
seller's
|
16.8 %
|
7.3 %
|
9.5 %
|
6
|
Washington,
DC
|
$569,764
|
5.3 %
|
81.6
|
Strong
seller's
|
18.4 %
|
-0.8 %
|
5.7 %
|
34
|
Cleveland,
OH
|
$227,456
|
8.0 %
|
83.1
|
Strong
seller's
|
18.2 %
|
-7.9 %
|
1.1 %
|
1
|
New York, NY
|
$658,935
|
7.6 %
|
85.1
|
Strong
seller's
|
12.4 %
|
-8.6 %
|
6.3 %
|
16
|
Minneapolis,
MN
|
$374,434
|
2.1 %
|
85.4
|
Strong
seller's
|
19.4 %
|
20.0 %
|
15.4 %
|
38
|
Providence,
RI
|
$478,431
|
8.7 %
|
86.4
|
Strong
seller's
|
12.9 %
|
1.9 %
|
14.5 %
|
40
|
Milwaukee,
WI
|
$346,140
|
7.1 %
|
88.1
|
Strong
seller's
|
10.0 %
|
6.2 %
|
10.9 %
|
15
|
Seattle, WA
|
$755,037
|
6.7 %
|
92.6
|
Strong
seller's
|
16.6 %
|
15.1 %
|
31.5 %
|
10
|
Boston, MA
|
$698,003
|
9.1 %
|
93.8
|
Strong
seller's
|
14.1 %
|
1.7 %
|
20.7 %
|
48
|
Hartford, CT
|
$357,099
|
12.3 %
|
101
|
Strong
seller's
|
11.9 %
|
6.0 %
|
7.3 %
|
12
|
San Francisco,
CA
|
$1,198,046
|
5.5 %
|
111.2
|
Strong
seller's
|
15.4 %
|
20.4 %
|
31.6 %
|
35
|
San Jose, CA
|
$1,642,546
|
12.5 %
|
111.6
|
Strong
seller's
|
13.8 %
|
25.8 %
|
48.7 %
|
49
|
Buffalo, NY
|
$258,964
|
7.7 %
|
118.1
|
Strong
seller's
|
12.4 %
|
-0.2 %
|
8.7 %
|
|
|
|
*Table showing
national statistics first, then ordered by Zillow's market
heat index value from most favorable for buyers to most favorable
for sellers.
|
|
|
1
|
The Zillow® Real Estate
Market Report is a monthly overview of the national and local real
estate markets. The reports are compiled by Zillow Research. For
more information, visit www.zillow.com/research.
|
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, dedicated partners
and agents, and easier buying, selling, financing and renting
experiences.
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#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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