Sales of previously owned homes retreated sharply in March, flashing a warning sign for the spring housing season that is traditionally the most popular time to buy or sell a home.
Existing-home sales fell 5.9% last month from February, slipping to a seasonally adjusted annual rate of 4.02 million, the National Association of Realtors® reported on Thursday.
The March figure was down 2.4% from a year ago, and the slowest March sales pace since 2009, when the subprime mortgage crisis decimated the U.S. housing market.
Still, the median sales price for existing homes sold in March rose 2.7% from a year ago, to $403,700, an all-time high for the month of March. All four U.S. regions registered price increases.
The slowdown in sales in March is a troublesome sign for the spring housing market, particularly because it precedes President Donald Trump‘s April 2 tariff announcement, which roiled financial markets and introduced economic uncertainty for homebuyers.
“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.”
Mortgage rates averaged 6.65% in March, a five-month low, according to Freddie Mac. They have since climbed sharply, hitting 6.83% last week following their biggest weekly gain in a year.
The existing-home sales data follows a report showing that sales of newly built homes rose in March, although the gain was powered entirely by a bump in sales in the South.
New-home sales are based on signed contracts, while sales of existing homes, which account for the vast majority of all transactions, are based on closings.
Existing-home sales fall in all regions
On a monthly basis, sales of existing homes dropped in all four major U.S. Census Bureau regions in March, plunging 9.4% in the West, dropping 5.7% in the South, falling 5% in the Midwest, and waning 2% in the Northeast.
In a bright spot for prospective homebuyers, inventory continued to rise, offering more options to choose from and potentially giving buyers greater negotiating power.
The total supply of existing homes for sale at the end of March was 1.33 million units, up 8.1% from February and a whopping 19.8% from a year ago. It represented a four-month supply of homes at the current sales pace.
Still, the national inventory of existing homes remains well below the average levels seen prior to the pandemic-era housing boom, and high prices and elevated mortgage rates continue to weigh on buyer demand.
Despite those challenges, sellers appear to be entering the spring season with supreme confidence.
A recent Realtor.com survey found that 81% of potential sellers think they will get their asking price or more this year, and 63% think they won’t have to make significant or unexpected concessions.
“Recent data shows that sellers continue to be optimistic,” says Realtor.com Chief Economist Danielle Hale. “The key question for this year’s buying season is whether homebuyers will have their currently shaky confidence restored soon enough to sync with the key buying season.”
This year’s spring season follows the two slowest years for home sales since the mid 1990s. Housing economist had hoped to see a rebound in activity as inventory rose, but economic uncertainty and fears of a recession have cast doubt on that outlook.
“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,” says Hale.
Keith Griffith is a journalist at Realtor.com covering housing policy, real estate news, and trends in the residential market. Previously, his work has appeared in Business Insider, The Street, Chicago Sun-Times, New York Post, and Daily Mail, among other publications. He has a master’s degree in economic and business journalism from Columbia University.