The past three years haven’t been easy on the housing market, whether you’re a buyer or seller. However, 2026 could be the year the housing market finally bounces back. Zillow’s latest housing market report shows that this spring is a promising time for both buyers and sellers.
1. The Average U.S. Home Has Seen an Increase in Value
"Zillow's latest data suggests buyers and sellers are starting to regain confidence. Existing home sales rose from a year ago, providing an early glimmer of hope that the housing market has turned a corner after three years bouncing along the bottom," said Mischa Fisher, chief economist at Zillow, in the official press release.
Compared to February 2025, home values are 0.4% higher, according to the report, with a 0.1% increase coming from February 2026. Right now, the typical value of a U.S. home is $361,371, according to the report. Month over month, most major metros are holding steady or seeing increases in home values compared to January 2026. As we continue into spring, an increase in buyer demand could add extra value to your home.
The good news is that home value isn’t the only thing improving in 2026. The Zillow report said that, thanks to lower mortgage rates and higher existing-home sales, spring 2026 could be a fantastic time to buy (and sell) a home.
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2. Mortgage Rates Are Finally Easing Up in 2026
Over the last year, Zillow's report found that mortgage payments dropped by 7.7%. For the first time in a few years, mortgage rates are hovering around 6%; if they stay this low, expect more buyers and sellers to enter the market. The average monthly mortgage payment is currently around $1,738.
3. Active Listings and Home Sales Are Continuing to Rise
Before spring arrives to bring fresh listings, most areas will need to overcome this winter’s harsh weather. According to the report, the number of new listings is down 3% from February 2025 due to severe storms. As the country finally starts to warm up closer to spring, the number of new listings should recover.
Well over 200,000 homes sold in February, according to Zillow, bringing the number of sales up 1.8% higher than in 2025. This is yet another good sign for sellers and buyers; as the housing market becomes more active in spring, home sales should continue to trend upwards.