Home Prices Kept Falling in January, Reflecting Soft End-of-Year Homebuying Demand (January 2023 Market Report Preview)

• The typical U.S. home value fell slightly from December to January (-0.1%), as home buyers awaited fresh listings. U.S. home values are still 6.2% higher than a year ago. [1]
• Las Vegas home values fell the most among top-50 markets: -1.2% month-over-month.
• Home values were lower than last January in seven major markets, with San Francisco experiencing the biggest drop (-4.9%).
• There were 16.7% fewer new listings than last January, and 29.8% fewer than in January 2021.
• Despite fewer new listings, active inventory climbed to a 19.4% year-over-year increase in January while homes are lingering longer on the market. Still, inventory remains 11.3% below January 2021’s level.
• Newly pending listings were down 20% year-over-year, and down 31.5% from January 2021.
• Asking rents fell less than 0.1% month-over-month (-$1), halting a three-month streak of measurably falling rents. The typical U.S. rent is now $1,970.

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Note: This is an early preview of Zillow’s monthly housing market data from Zillow’s Economic Research team, offering an accelerated first look at the previous month’s key housing metrics. More detail and analysis will be included later in the month in our standard full-length Monthly Rental Report and Monthly Market Report.

[1] “Typical U.S. home value” refers to the Zillow Home Value Index, which was overhauled starting in January 2023 to rely on the new neural network-based Zestimate, which went live in 2022. The transition to this updated ZHVI is being applied across the whole history for each time series; in other words, the downloadable data and charts referenced here and at zillow.com/research/data will not include a transition from the old Zestimate in December 2022 to new Zestimate methodology January 2023.