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The outlook for home buyers is getting better, with affordability improving and over a million homes for sale nationwide in February, the highest post-pandemic total for that month.
Mortgage rates are at their lowest level so far in 2025, and home values are rising moderately, according to a new report by Zillow. Additionally, buyers are getting more time to reach a decision, as it takes more than three weeks for the average home to go under contract.
In some areas, more sellers are reducing their prices, and buyer bargaining power is increasing. But other places are still sellers markets, as homes sell as quickly as seven days and bidding wars push sale prices above asking price.
“While affordability remains incredibly challenging, the housing market is improving for buyers nationally,” Zillow Senior Economist Orphe Divounguy said in a news release. “Some of the strongest buyers markets are in the Southeast, where builders have been able to keep up with demand. Sellers are still in the driver’s seat in the Northeast and in Northern California, where buyers are competing for the few homes that are available.”
Zillow has developed a market “heat index” to help buyers, sellers and agents understand how negotiations might go in their metro area. The real estate listing firm analyzes data to identify the five top metro areas for buying a home and the best five major metros for selling a home this spring.
Miami homes spend 60 days on the market — nearly three times longer than the national average, so buyers can take their time deciding. The slow pace means sellers are more likely to drop their price. Almost 25% of homes for sale in Miami had a price reduction in February.
New Orleans
The Big Easy offers the most for-sale options to buyers looking for vibrant culture and a city with a rich history. Inventory is up 42% from before the pandemic, and 11.4% more homes are for sale than last year. Homes stay on the market for 58 days before going under contract.
Jacksonville
In this Florida city, 26.3% more homes are on the market this year compared to last year, and 28.8% of sellers cut their asking price.
Tampa
In Tampa, 31.9% of listings in Tampa took a price cut, and home values are down 3.6% from last year. Inventory is 19.8% more than it was a year ago
Memphis
It costs less to own than to rent in Memphis, on a monthly basis. The typical monthly mortgage payment in Memphis is $1,228, but rents average $1,418. Additionally, buyers have a median 29 days to decide on a home before it goes under contract.
Best Metros for Sellers
Buffalo
Zillow rates Buffalo the hottest market of 2025. Competition for homes is fueled by a strong job market, especially among first-time buyers seeking to move to upstate New York. Homes stay on the market 12 days or less. Many homes draw bidding wars, and 56% of listings sell above their list price. Home values are up 5% year over year.
San Jose
Prices continue to rise in San Jose, the most expensive large metro area, up 7.6% from a year ago. In San Jose, 57.1% of homes sell for above list price and spend just nine days on the market before sale.
San Francisco
Bay Area sellers have a bit more competition in San Francisco than in neighboring San Jose. For-sale listings up are 32.5% over last year, but 44.4% of homes sell for more than the asking price.
Hartford
Homes in the insurance capital of the world are selling in only seven days, more than two weeks faster than the national average. That’s because inventory is way down; there were 71% fewer listings this February than pre-pandemic. Home values are up over 57% from before the pandemic and rose 5.6% year over year.
Boston
Boston sellers can expect bidding wars, meaning that 40.4% of sellers can expect to sell their home for more than they asked. Boston-area home values are appreciating twice as fast as the national average. Homes stay on the market an average eight days.
