In March 2025, the U.S. housing market experienced a notable slowdown. Existing-home sales declined by 5.9% from February, reaching a seasonally adjusted annual rate of 4.02 million units—the lowest March figure since 2009. This downturn is attributed to persistent affordability challenges, including elevated mortgage rates and rising home prices.
Despite the decrease in sales volume, the median existing-home price climbed to a record $403,700 in March, marking a 2.7% increase from the previous year. This price growth occurred even as the inventory of unsold homes rose by 8.1% from February, totaling 1.33 million units.
High mortgage rates, averaging around 6.83% in mid-April, have contributed to the market’s sluggishness by deterring potential buyers. Consequently, homes are staying on the market longer, with an average of 36 days in March compared to 33 days a year earlier.
Regional disparities are emerging, with certain areas like Texas and Florida experiencing price declines due to increased inventory and waning demand. Economists are divided on future price trends, with some forecasting modest increases and others anticipating declines as inventory levels rise and buyer demand softens.
For investors and prospective buyers, these developments suggest a market in transition. While challenges persist, opportunities may arise for those prepared to navigate the evolving landscape.
