Continuing its flip-flop—after starting the year with sliding sales and jumping back up in February—existing-home sales were down again, at almost 6%, in March.
Compared to February, existing-home sales dropped 5.9% in March, from 4.26 million to a rate of 4.02 million, according to the latest data from the National Association of REALTORS® (NAR).
The decline was present year-over-year as well, down 2.4% from 4.12 million in March 2024.
“Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society,” said NAR Chief Economist Lawrence Yun.
Median existing-home prices continued to climb and, notably, reached an all-time high for the month of March: $403,700—up 2.7% year-over-year.
At the end of March, there were 1.33 million unsold existing homes—up 8.1% month-over-month—resulting in a four-month supply.
Although the housing market is on solid footing, added Yun, a small deceleration in home price gains would be a welcome improvement for affordability.
Even though rates declined from 7% to 6.6%, buyers’ economic concerns seemed to trump that, said Realtor.com® Chief Economist Danielle Hale.
“The tailwind of falling mortgage rates, however, was likely offset by rising concerns about the outlook for personal financial situations and job security reported in consumer surveys, despite the fact that actual labor market data remain quite healthy,” she said. “The past few years have hinged on whether there would be enough sellers, but as the proverbial housing shelves are better stocked, 2025 is more likely to be about where there are buyers.”
Bright MLS Chief Economist Lisa Sturtevant echoed Hale, emphasizing that even though rates are down, economic uncertainty and consumer anxiety are up.
“While some buyers will take advantage of more listings and more room for negotiation, others will hold back, unwilling to make a big decision in these current uneasy times,” she said. “Data on April home sales will be a good measure of whether 2025 continues to be sluggish or whether the shifting market will bring more buyers into the market.”
Conversely, though, the monthly REALTORS® Confidence Index found that properties typically remained on the market for 36 days, down from 42 month-over-month and up from 33 year-over-year.
First-time buyers were responsible for 32% of sales in March, up from 31% the previous month and the same year-over-year.
In addition, cash sales made up 26% of transactions, down 32% in February and 28% in March 2024. Distressed sales made up 3% of March’s existing-home sales, the same as last month and up 2% from last year.
Those purchasing a second home, or individual investors, purchased 15% of homes in March, down 16% in February and remained the same from last year.
Frances Katzen—a top-producing broker at Douglas Elliman in New York City—emphasized how the increasing price of rentals is driving people to purchase homes.
“It pushes people to want to own equity, and parents wanting to buy for their kids. The biggest component of limitation has been not only the rates, but people who’ve lost their returns on their investments, which they would usually use towards contribution, on behalf of an adult working child,” she said. “Sixty percent of our trades last year were parents buying for their children—adult children or students about to be in the workforce.”
For single-family homes, sales for existing-homes fell 6.4% to 3.64 million, down 2.2% year-over-year. The median price for existing single-family homes was $408,000 in March, up 2.9% from the previous year.
Sales for existing condos and co-ops remained unchanged in March at 380,000 units, down 5% year-over-year. The median price was $363,000, up 1.5% from last year.
Regional breakdown
In March, existing-home sales were down in all four major U.S. regions.
Sales in the Northeast fell 2% to an annual rate of 490,000, remaining the same year-over-year. The median price of homes increased 7.7% from March 2024 to $468,000.
In the Midwest, sales dropped 5% to an annual rate of 950,000, down 3.1% from the previous year. The median price increased 3.5% year-over-year to $302,1000.
The South saw a 5.7% drop in existing-home sales to an annual rate of 1.81 million, down 4.2% from last year. Median prices increased 0.6% year-over-year to $360,000.
The West experienced the largest plunge in sales, down 9.4% in March to a rate of 770,000, but increased 1.3% from March 2024. Median home prices increased 2.6% year-over-year to $621,200.