Zillow Reports U.S. Home Values Declined 1.2% in February, First Drop in 14 Months

Zillow's latest housing market report shows the national home value index declined 1.2% month-over-month in February, breaking a 14-month streak of consecutive gains.

Markets hit hardest: - Austin, TX: -3.1% - Phoenix, AZ: -2.7% - Tampa, FL: -2.4% - Denver, CO: -1.9%

Markets still rising: - New York, NY: +0.8% - Chicago, IL: +0.6% - Boston, MA: +0.4%

Our take: The Sun Belt correction we've been watching is accelerating. These were the pandemic boomtowns where prices outran local incomes by the widest margins. The correction is healthy — but if you bought in Austin at peak 2022 prices, February's data isn't fun reading.