Sales of existing homes plunged 5.9% in March

Suddenly, buyers have a lot more homes to choose from

By Mark Huffman of ConsumerAffairs

April 24, 2025

Key takeaways

• Existing home sales fell 5.9% from February and 2.4% from March 2024

• The median home price went up 2.7% from March 2024

• The inventory of unsold homes jumped 8.1% from February

Existing-home sales across the United States dropped sharply in March, continuing a trend of sluggish activity due to persistent affordability challenges, according to the latest report from the National Association of Realtors. All four major U.S. regions recorded declines on a monthly basis, with annual performance offering a mixed picture.

The report showed that total existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, fell by 5.9% in March compared to February. This decline brought the seasonally adjusted annual rate to 4.02 million units. Compared to March 2024, sales slipped 2.4% from 4.12 million.

NAR Chief Economist Lawrence Yun attributed the slowdown to high mortgage rates, stating, Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates, NAR Chief Econmist Lawrence Yun said in a stateement. Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.

Inventory and prices move higher

With fewer sales, housing inventory rose. The number of homes for sale at the end of March stood at 1.33 million units, marking an 8.1% increase from February and a 19.8% jump year-over-year. At the current pace, unsold inventory represents a 4.0-month supplyup from 3.5 months in February and 3.2 months a year ago.

So far, however, that increase in housing supply has failed to dampen prices. The median price of existing homes in March hit $403,700, representing a 2.7% rise from the same time last year. All regions of the country saw price gains, reflecting continued growth in household wealth derived from real estate.

Yun highlighted the resilience of home values, saying, With mortgage delinquencies at near-historical lows, the housing market is on solid footing… each percentage point gain in home prices adds more than $500 billion to the household balance sheet.

Outlook

While home prices continue their upward march, bolstering household wealth, the affordability crunch driven by high mortgage rates remains a key headwind. Analysts suggest that even a modest cooling in price growth could aid buyers, particularly first-time purchasers, and provide a needed boost to market mobility in the months ahead.

Time on Market: Homes typically stayed on the market for 36 days in March, slightly shorter than February’s 42 days but longer than 33 days in March 2024.

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