BAM Key Details:

  • Zillow released its Housing Market Report for April 2024, highlighting the best markets for homebuyers. Florida and Texas have seven of the top 10 metro areas listed, thanks to strong construction numbers, which have eased buyer competition.

Seven of the top 10 markets for homebuyers are in Texas and Florida. 

According to Zillow’s latest housing market report for April 2024, most of the 50 largest U.S. metros favor home sellers. But in markets where strong construction has tempered competition, buyers have more options and more time to decide. 

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. 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.

Skylar Olsen

Zillow Chief Economist

Top markets for buyers and sellers in April 2024

Strong construction in both Texas and Florida has not only boosted inventory and given buyers more options to choose from, it’s also eased competition for those options, allowing buyers more time to make decisions. 

Three U.S. markets, including Austin and San Antonio, now have more inventory than before the pandemic. 

Metros with the smallest inventory deficits include Tampa, Orlando, and Jacksonville. 

The Zillow Market Heat Index is used to rank each of the 50 largest U.S. metros in this study from the most favorable for buyers to the most favorable for sellers. 

The index visually represents buyer urgency or seller confidence in a particular market, based on metrics like the following:  

  • The percentage of homes that sell quickly
  • The percentage of homes with a price cut 
  • Buyer engagement with active Zillow listings (competition)

Here’s how the scoring system breaks down: 

  • A score of 70 or above to be a “strong sellers market.” 
  • A score from 55 to 69 to be a “sellers market.”
  • A score from 44 to 55 to be a “neutral market.” 
  • A score from 28 to 44 to be a “buyers market.”
  • A score of 27 or below to be a “strong buyers market.” 

Zillow’s latest ranking includes metros not among the 50 most populous U.S. markets.

Zillow-market-heat-index-May-2024-charts

Source: Zillow

Top markets for buyers in April 2024  (ranked by their Zillow Market Heat Index*):

  1. Cape Coral, FL (34.3)
  2. McAllen, TX (36.1)
  3. North Port, FL (37.7)
  4. Deltona, FL (38.9)
  5. New Orleans, LA (39.1)
  6. Miami, FL (39.2)
  7. Urban Honolulu, HI (42.9)
  8. Tampa, FL (43.7)
  9. Palm Bay, FL (43.7)
  10. Jackson, MS (44.2)

Top markets for sellers in April 2024 (ranked by their Zillow Market Heat Index):

The markets most favorable to sellers in April include more expensive coastal tech hubs and relatively affordable Northeast markets (Hartford, CT, and Providence, RI), as well as hot Upper Midwest markets (Milwaukee, WI, and Minneapolis, MN). 

  1. Rochester, NY (187.5)
  2. Syracuse, NY (118.6)
  3. Buffalo, NY (118.1)
  4. San Jose, CA (111.6)
  5. San Francisco, CA (111.2)
  6. Hartford, CT (101)
  7. Springfield, MA (100.2)
  8. Albany, NY (98.5)
  9. Bridgeport, CT (93.9)
  10. Boston, MA (93.8)

Housing Market Highlights for April 2024

Zillow’s report provided the most recent data for the following market indicators: 

  • Inventory
  • Home values and mortgage rates
  • Home sales with price cuts
  • Newly pending listings
  • Days to pending
  • Rents

Inventory

Both inventory and new listings increased month over month and year over year in April. Inventory climbed 6.4% from the previous month and 18% from April 2023, marking the second-largest annual uptick since at least 2019. 

Buyers also had more fresh housing options as April’s new listings grew nearly 11% from March and nearly 16% year over year. 

Despite those increases, total inventory is still 36% below pre-pandemic norms. 

Metros with the largest annual increases in inventory (from April 2023 to April 2024):

  1. Tampa, FL (Inventory increased 50.1% year over year)
  2. Orlando, FL (up 41.6%)
  3. Miami, FL (up 41.3%)
  4. Jacksonville, FL (up 37.2%)
  5. Atlanta, GA (up 32.3%)
  6. Dallas, TX (up 30.5%)
  7. San Diego, CA (up 29.2%)
  8. San Antonio, TX (up 27.4%)
  9. San Jose, CA (up 25.8%)
  10. Memphis, TN (up 25.0%)

Home Values & Mortgage Rates

In April, mortgage rates topped 7% for the first time this year, and that, in combination with rising inventory, tempered buyer competition at a time of year when it typically heats up. 

Home values in the U.S. also increased in April, growing 1.2% from the previous month and 4.4% year over year, showing a modest slowdown from March’s 4.6% annual growth.  

The value of the typical U.S. home in April was $359,402.

Zillow-Home-value-index-raw-April-2024-graph

Source: Zillow

Price Cuts

The share of home listings with a price cut rose to 22.4% in April, reaching the highest point in the past six years—and a significant increase from 17.2% in April 2023.

Price cuts can signify either— 

  • Weakening buyer demand that foretells slower price growth ahead
  • Sellers and their agents feeling the market and coming up with their pricing strategy

Given our rapidly changing market, the second scenario seems more likely as agents have relatively few recent home sales to reference as comps. 

Newly-pending listings & days on market

April’s newly-pending listings were up 6.5% from the previous month and up 4.4% from April 2023. 

Typical days on market (from initial list date to pending status) was 13 days in April—unchanged from the previous month but three days longer than April 2023, marking the first time since June 2023 that the pace of sales was slower than the year before. 

That said, 13 days is still fast by historical standards. 

Rents

April’s asking rents were up 0.6% from the previous month, down 0.1% from the pre-pandemic average for rent growth at this time of year (0.7%). 

The national median rent is currently up 3.6% year over year, and rents are above year-ago levels in 48 of the 50 most populous U.S. metro areas.

Metros with the highest annual rent increases: 

  1. Providence (7.7%)
  2. Louisville (7%)
  3. Buffalo (6.5%)
  4. Cleveland (6.5%)
  5. Hartford (6.2%)

Read the full report for more information, including metro-level stats and methodology.