March Home Sales Drop to Their Slowest Pace Since 2009
Key Points:
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Sales of previously owned homes in March fell 5.9% from February. See CNBC News article HERE
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Inventory was up nearly 20% from a year earlier.
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More inventory and slower sales are starting to put a chill on prices.
The usually busy spring housing market is off to a disappointing start in 2025. Sales of previously owned homes fell by 5.9% from February and were down 2.4% compared to March 2024, according to the National Association of Realtors. This marks the slowest March sales pace since 2009, a clear signal that today’s market is dramatically different from the frenzied years of 2020-2022.
Mortgage Rates and Economic Worries Hold Back Buyers
Higher mortgage rates — stubbornly staying above 7% through January and most of February — combined with broader economic concerns have weakened buyer demand. Many potential homeowners are feeling squeezed by affordability issues, despite a slight easing of rates toward the end of February.
“Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates,” noted Lawrence Yun, NAR’s chief economist.
Inventory Rising, Prices Cooling
A nearly 20% increase in available inventory compared to March 2024 suggests a shift toward a more balanced market. Yet, with just a 4-month supply (and 6 months considered ideal for balance), it's still tilted slightly toward sellers — for now.
Even though more homes are available, prices are beginning to cool. The median existing-home price reached $403,700, an all-time high for March, but annual price growth slowed to 2.7% — the smallest gain since August 2024.
“Household wealth in real estate is still climbing,” Yun added, highlighting the overall $52 trillion value of the residential market. Yet, cracks are beginning to show, especially with signs of more canceled contracts and increasing consumer anxiety over inflation and jobs.
Regional Insights
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West: Sales dropped more than 9% month-to-month but showed a slight year-over-year increase, thanks to strong activity in the Rocky Mountain states.
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Other Regions: Sales slumped across the board, reflecting how widespread the slowdown really is.
What Sellers Should Do Now
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Price Realistically: Overpricing could leave your home sitting unsold for weeks or months.
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Maximize Presentation: Good staging and cosmetic upgrades can make a big difference.
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Be Flexible: Offering concessions or being open to negotiations can help close deals faster.
What Buyers Should Consider
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Leverage Your Position: With more inventory and longer market times, buyers have more negotiating power than in recent years.
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Act Smartly: Don’t rush, but also be ready to act if you find the right home at the right price.
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Stay Informed on Rates: Rates are slightly lower now but could rise again depending on broader economic trends.
Final Thoughts
While March numbers paint a grim picture, this environment creates opportunities for prepared buyers and sellers. Adjusting expectations, staying flexible, and focusing on long-term goals will be key to navigating the 2025 housing market.
