Key Highlights:
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Sales Decline: Existing-home sales in the U.S. dropped 5.9% in March 2025 compared to February, reaching a seasonally adjusted annual rate of 4.02 million units.
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Year-over-Year Comparison: Sales were down 2.4% from March 2024.
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Mortgage Rates: The average 30-year fixed mortgage rate hovered around 6.83% in March, contributing to reduced affordability.
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Home Prices: The median existing-home price rose 2.7% year-over-year to $403,700, marking the 21st consecutive month of annual price increases.
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Inventory Levels: Housing inventory increased by 8.1% from February to 1.33 million units, a 19.8% rise from a year earlier.
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Market Dynamics: Homes remained on the market for an average of 36 days in March, up from 33 days a year ago.
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Buyer Demographics: First-time buyers accounted for 32% of sales, below the 40% benchmark considered healthy for the market.
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Price Segmentation: Sales of homes priced at $1 million or more increased by 14%, while those priced between $100,000 and $250,000 declined by 4%.
Summary:
In March 2025, U.S. existing-home sales experienced a significant decline, falling 5.9% from the previous month and 2.4% year-over-year, according to the National Association of REALTORS®. This downturn is attributed to elevated mortgage rates, which averaged around 6.83%, and sustained high home prices, with the median price reaching $403,700. Despite an 8.1% monthly increase in housing inventory to 1.33 million units, buyer activity remained subdued, partly due to affordability challenges. Homes stayed on the market longer, averaging 36 days, and first-time buyers comprised only 32% of purchases, below the ideal 40% threshold. Notably, sales of higher-priced homes ($1 million and above) rose by 14%, while sales in the $100,000–$250,000 range declined by 4%, highlighting disparities in market accessibility. Overall, the housing market continues to grapple with affordability issues, impacting buyer participation despite increased inventory.
