Zillow employs the Market Heat Index to evaluate the competitiveness of housing markets, assigning scores based on home price changes, inventory levels, and market duration. A score of 55 indicates a neutral U.S. market in February 2025, with variance across different regions. The top ten hottest markets predominantly reside in New York and New England, where sellers have the upper hand, while the coldest markets are found mainly in the South, reflecting conditions more favorable for buyers. Overall, Zillow highlights regional disparities in market strength and buyer-seller dynamics.
According to Zillow's latest report, the U.S. housing market is currently rated at 55, indicating a neutral market where buyers hold some negotiating power.
Zillow's Market Heat Index uses various indicators to create scores that reflect whether housing markets are more favorable to buyers or sellers.
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