Competition Heats Up Over Record-Low Share of New Listings

The typical U.S. home value climbed 0.9% from February to March, but despite a rebounding seller’s market at the start of spring, there were 22.3% fewer new listings than in March 2021, and 20.2% fewer than in March 2020, Zillow reports. Though stronger home appreciation benefits spring sellers, many aren’t willing to refinance at today’s interest rates, which are nearing 7%.

Among the nation’s top 50 housing markets, New Orleans was the only one to see home values fall in March, while Kansas City, Kan., posted the largest monthly gain of 1.6%.

The Zillow Home Value Index is 3.0% higher than one year ago and 3.2% lower than its peak last July, which was followed by 6 straight months of declines. This month’s turnaround confirms that market conditions have swung from a slow seller’s market in late 2022 to a typical springtime seller’s market, with remarkable speed.

Home values fell from year-ago levels in 18 major markets, with San Francisco experiencing the biggest drop (-9.4%). But even San Francisco had strong monthly growth: 1.3%. That suggests that many markets may have already seen prices bottom out, and those price declines may be helping entice more buyers this spring.

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