US Existing Home Sales Fall to 9-Month Low in March as Median Price Hits Record $408,800
Sales of existing homes in the United States plunged to a nine-month low in March, dropping 3.6% from February to a seasonally adjusted annual rate of 3.98 million units, according to the National Association of Realtors. This marked a slower-than-expected start to the critical spring selling season, with sales also down 1% from March last year, particularly in the Northeast and Midwest regions.[1][2]
Despite the sales slump, the national median home price climbed 1.4% year-over-year to a record $408,800 for any March since data tracking began in 1999, reflecting 33 straight months of annual price increases. NAR Chief Economist Lawrence Yun attributed the weak demand to lower consumer confidence and softer job growth, which have left buyers hesitant even as mortgage rates briefly eased earlier in the year.[1][2]
Economists and reports point to heightened geopolitical tensions, including the ongoing war with Iran, as a key factor freezing the market. Fears over surging energy prices and potential inflation have driven up yields on U.S. 10-year Treasury bonds, which influence mortgage pricing; the average 30-year mortgage rate stood at 6.37% last week, up from lows around 5.98% in January and February when many March sales likely went under contract.[1]
Inventory conditions offer a mixed picture: supply reached 4.1 months at the current sales pace, higher than a year ago in many metro areas, which has tempered price growth locally. Yet limited overall stock continues to prop up prices, helping typical homeowners build significant wealth—NAR estimates $128,100 over the past six years—while sidelining first-time and lower-income buyers.[2]
The downturn underscores broader challenges in the housing sector, affecting real estate agents, builders, and potential homeowners amid traditionally peak buying months. As reported by Bloomberg, this slump highlights persistent hurdles heading into spring, while BBC notes warnings that the slowdown could deepen if economic uncertainties persist.[Source 1][Source 2]
Looking ahead, market watchers will monitor April data for signs of recovery, especially if mortgage rates stabilize or inventory builds further. Regional disparities persist, with year-over-year sales up in the South and West, suggesting uneven national recovery potential as buyers weigh affordability against rising costs.[1][2][3]