Existing home sales fell 5.9% in March ahead of the busy spring selling season as the median price topped $400,000 – the highest median home price for any March, according to the National Association of Realtors.
Sales decreased in all four major U.S. regions.
Total existing-home sales – which includes transactions for single-family homes, townhomes, condominiums and co-ops – fell 5.9% from February to a seasonally adjusted annual rate of 4.02 million in March. Year-over-year, sales drew back 2.4%, down from 4.12 million in March 2024.
“Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates,” NAR Chief Economist Lawrence Yun said. “Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.”
Total housing inventory at the end of March was 1.33 million units, up 8.1% from February and 19.8% from one year ago when it stood at 1.11 million. Unsold inventory sits at a 4-month supply at the existing sales pace, up from 3.5 months in February and 3.2 months in March 2024. A six-month supply is generally considered a balanced market.
The median existing-home price for all housing types in March was $403,700, up 2.7% from one year ago when it was $392,900.
“In a stark contrast to the stock and bond markets, household wealth in residential real estate continues to reach new heights,” Yun said. “With mortgage delinquencies at near-historical lows, the housing market is on solid footing. A small deceleration in home price gains, which was slightly below wage-growth increases in March, would be a welcome improvement for affordability.”
The 30-year fixed-rate mortgage averaged 6.83% as of April 17. That’s up from 6.62% one week before, but down from 7.1% one year ago, according to Freddie Mac.
