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Zillow's January Market Report shows improving affordability for home buyers
U.S. home values have fallen for six consecutive months, according to the Zillow Home Value IndexSEATTLE, Feb. 4, 2026 /PRNewswire/ -- U.S. home values fell
About this update from Zillow Group, Inc.
[{"type":"text","content":"U.S. home values have fallen for six consecutive months, according to the Zillow Home Value IndexSEATTLE, Feb. 4, 2026 /PRNewswire/ -- U.S. home values fell on a monthly basis for the sixth consecutive month in January, according to the Zillow® Home Value Index. This trend mirrors last year, when home values fell each month from August 2024 to February 2025. The monthly mortgage payment on a typical U.S. home is now 8.4% less expensive than a year ago, driven down primarily by lower mortgage rates.\n \n \n \n \n \n \n \nNew listings and the early read on sales both fell in January compared to last year, likely influenced by poor weather in much of the country. Buyers are having an easier time than last year, with homes on the market longer and fewer homes selling above list price.\"We're starting 2026 following three years that saw transactions bouncing along the bottom and affordability as a chronic struggle,\" said Mischa Fisher, chief economist at Zillow. \"Our forecast for both sales and affordability this year is one of gradual improvement. January was a cautious first step along that path, as potential buyers and sellers dealt with severe winter weather in many major markets. We expect sales to pick up as spring approaches. Housing affordability continues to improve for prospective homebuyers, while modest growth in the Zillow Observed Rent Index points to continued cooling in shelter inflation.\"Home Values & Mortgage PaymentsThe typical U.S. home value is $358,968.The Zillow Home Value Index (ZHVI) fell 0.4% month over month in January. Home values are 0.2% higher than a year earlier.The monthly mortgage payment on a typical U.S. home is $1,733, assuming a 20% down payment and excluding taxes and insurance. That is 8.4% lower than last year.InventoryThere were 1.11 million homes for sale nationwide in January.Active inventory was 6% higher than a year earlier. Inventory fell 0.1% from December.New for-sale listings totaled 269,922 in January, down 5.5% from a year earlier, and up 54.8% from December.Sales219,644 homes were sold in January, according to the preliminary Zillow sales count nowcast. That is 4% lower than a year earlier, and down 26.4% from December. 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, sh...