Zillow Predicts Divergent US Housing Market by 2026

S. In an update dated April 25, 2026, the real estate technology company said well-priced, attractive listings are still drawing fast offers, while many other properties are taking longer to secure a buyer. Zillow framed the shift as a sign of a more balanced market, giving buyers more options and greater negotiating leverage than in recent years.

Zillow’s analysis found that, nationwide, 18.5% of homes went under contract within seven days in February 2026. The pace was notably faster in certain metropolitan areas, including St. Louis, Hartford, and Seattle, where more than one-third of listings reached pending status within a week. At the same time, Zillow said the “typical” sold home went pending after 19 days, while the median active listing stayed on the market for 56 days.

The company highlighted how pricing outcomes differ sharply between fast and slow movers. Homes that went under contract within seven days were 2.6 times more likely to close above the asking price. Zillow reported that 44.3% of these quick-to-pend homes sold above list price, compared with 17.1% across all homes.

Zillow also pointed to the widening distance between what sells and what sits. The 19-day timeline for a typical sold home versus the 56-day median for active listings represents the largest gap since March 2020, according to the company. Zillow described this as evidence of segmentation: buyers are acting decisively on listings that meet expectations, while passing over homes that do not.

Financial conditions were cited as a key backdrop to the split. Zillow noted that the average 30-year fixed-rate mortgage was 6.32% as of April 24, 2026, a level it characterized as challenging for many households. Against that rate environment, the company said affordability is helping sustain demand in parts of the Midwest, including St. Louis, Cincinnati, and Kansas City, where homes are more likely to sell quickly.

In contrast, Zillow said several Sun Belt markets are seeing slower sales for most properties as inventory rises. The company listed Austin, San Antonio, Charlotte, and Jacksonville among the areas where increased supply is contributing to longer time on market. Zillow’s update did not specify how long listings are taking in each metro, leaving uncertainty about the degree of slowdown across those cities.