Existing home sales fall 5.9% in March as median price tops $400,000

Existing-home sales fell sharply in March, slipping 5.9% from February to a seasonally adjusted annual rate of 4.02 million, according to the National Association of Realtors®. Sales declined in all four major U.S. regions, with year-over-year drops in the Midwest and South, a gain in the West, and no change in the Northeast.

Compared to March 2024, total existing-home sales — including single-family homes, townhomes, condominiums and co-ops — declined 2.4%, down from 4.12 million a year earlier.

“Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates,” said NAR Chief Economist Lawrence Yun. “Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.”

The median existing-home sales price rose to $403,700 in March, a 2.7% increase from $392,900 one year ago. It marked the 21st consecutive month of year-over-year price gains and the first time the median price exceeded $400,000 for the month of March. Prices rose in all four regions.

Total housing inventory at the end of March stood at 1.33 million units, up 8.1% from February and 19.8% higher than the 1.11 million recorded a year ago. Unsold inventory represents a 4.0-month supply at the current sales pace, an increase from 3.5 months in February and 3.2 months in March 2024.

“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. With real estate asset valuation at $52 trillion, according to the Federal Reserve Flow of Funds, each percentage point gain in home prices adds more than $500 billion to the household balance sheet.”

According to the monthly REALTORS® Confidence Index, properties remained on the market for a median of 36 days in March, down from 42 days in February but up from 33 days in March 2024.

First-time buyers accounted for 32% of March sales, up from 31% the month before and matching the share from a year earlier. The 2024 Profile of Home Buyers and Sellers, released in November, found the annual share of first-time buyers was 24%, the lowest ever recorded.

Cash buyers made up 26% of transactions in March, down from 32% in February and from 28% in March 2024. Individual investors and second-home buyers, who comprise a significant share of cash buyers, purchased 15% of homes, down from 16% in February and unchanged from one year ago.

Distressed sales, including foreclosures and short sales, represented 3% of transactions in March, unchanged from February and up from 2% in March 2024.

Freddie Mac reported the 30-year fixed-rate mortgage averaged 6.83% as of April 17, up from 6.62% a week earlier but down from 7.1% one year ago.

Single-family home sales fell 6.4% to a seasonally adjusted annual rate of 3.64 million in March, a 2.2% decrease from March 2024. The median existing single-family home price was $408,000, up 2.9% year-over-year.

Sales of existing condominiums and co-ops were unchanged in March at a seasonally adjusted annual rate of 380,000 units, 5.0% lower than a year earlier. The median condo price rose to $363,000, up 1.5% from $357,700 in March 2024.