US Existing Home Sales Fell 5.9 Percent in March, Largest Drop in More Than 2 Years

The median home sales price continued to grow at 2.7 percent year over year to a new national median of $403,700, an all-time high for the month of March.

A home for sale in Austin, Texas, on Oct. 16, 2023. Brandon Bell/Getty Images

Existing single-family home sales across the United States fell by 5.9 percent in March from February—the steepest monthly drop since November 2022—and were down 2.4 percent year over year, the National Association of Realtors (NAR) said in an April 24 statement.

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

NAR said existing home sales declined in all four major U.S. regions in March.

In the Northeast, existing home sales declined by 2 percent from February to an annual rate of 490,000, unchanged from March 2024. In the Midwest, they fell by 5 percent to an annual rate of 950,000, down 3.1 percent from the same month last year.

Sales in the South dropped by 5.7 percent from February to an annual rate of 1.81 million, a decline of 4.2 percent from a year earlier. In the West, sales plunged 9.4 percent in March to an annual rate of 770,000 but were up by 1.3 percent from March 2024.

All properties typically remained on the market for 36 days in March, up from 33 days last year, and first-time homebuyers made up 32 percent of March sales. Cash sales accounted for 26 percent of purchases.

Nationally, inventory rose by 8.1 percent from the previous month to 1.33 million at the end of March, creating four months of housing supply.

The median home sales price continued to grow at 2.7 percent year over year to a new national median of $403,700, an all-time high for March and the 21st consecutive month of year-over-year price increases, according to the NAR.

‘Price Growth Slowed’

An April 17 Zillow report showed that all home sales—both existing and new—increased in March. The data indicated that home prices were flat compared to last year. Inventory grew by almost 9 percent last month, with more than 375,000 homes on the market, in addition to another 265,000 listings for pending sales in March. As a result, total inventory soared to more than 1.15 million homes, a 19 percent increase from a year ago.

Average mortgage rates were lower this year, at 6.65 percent compared to 6.82 percent in March 2024.

“With more options available, competition cooled, and home price growth slowed significantly,” the Zillow report said.

Home values in March declined in five major metro areas: Miami, Tampa, Orlando, and Jacksonville in Florida; and San Antonio in Texas, according to Zillow.

Areas where home values increased included San Jose, California; Milwaukee; San Francisco; Pittsburgh; and Hartford, Connecticut.

Zillow reported that the typical single-family home was valued at $359,741 in March. A mortgage payment on that home now demands about 35.3 percent of median household income nationwide, more than 5 percent above the recommended 30 percent income rule.

More than 23 percent of Zillow’s listings received a price cut in March. That compares to just 21.6 percent in February and 20.6 percent one year ago.

Some 24.6 percent of homes sold above their asking prices last month, up from 22.3 percent in January. More than 30 percent of homes were sold above their list prices last year.

The Bronx borough of New York City appeared to be bucking national trends. Closed sales of single-family homes increased by 20.7 percent in March, the highest sales increase in the New York metro area and the lower Hudson Valley. The median sales price of single-family homes rose by 13.6 percent from last year, reaching a new high of $710,000.

Bronx co-op sales were also the highest in the region, soaring by more than 65 percent from March 2024. Median sales prices for co-ops climbed by 26.8 percent to $260,000. Inventory of single-family homes in the Bronx increased by 29.6 percent, while new listings rose by 48.4 percent.

According to the Department of Housing and Urban Development, an estimated 503,000 new houses were for sale at the end of March, representing a 7.9 percent increase over last year. The March median home price of $403,600 for new construction was down by 7.5 percent from a year ago.

“A wide inventory availability—at an 8-month supply—is helping newly constructed home sales to move forward,” Yun said in an April 23 statement. “The homebuilders’ focus on smaller-sized homes is also attracting buyers.”