According to the National Association of REALTORS®, fewer homes were sold in March compared to February. In fact, sales were down by almost 6%. That’s what they mean by “month over month” — they’re just comparing this month to the one before it.
They also said that sales were 2.4% lower than in March of last year. That’s “year over year” — comparing the same month across different years to see the bigger picture.
So, what’s the story behind these numbers?
Mortgage rates are still high, and that’s making it tough for people to buy and sell. Fewer buyers can afford today’s prices and rates, and fewer sellers want to give up the low rate they already have. It’s like everyone’s waiting for something to change.
NAR’s Chief Economist said that people aren’t moving much right now — and when people aren’t moving, it slows down the economy too.
But there’s a silver lining: more homes are hitting the market.
In March, there were about 1.33 million homes for sale — up from February and nearly 20% higher than last year. More homes for sale means more choices for buyers and less pressure on prices. That’s good news.
Also, the “supply” of homes — how long it would take to sell everything currently listed — rose to 4 months. That’s what they call “months of inventory.” A balanced market is usually around 5–6 months, so we’re not there yet, but we’re getting closer.
Prices are still going up, just not as fast.
The typical home sold for around $403,700 in March — about 2.7% higher than a year ago. That’s a smaller increase than we’ve seen in past years, which might actually help with affordability a bit.
Other things to know:
- Homes sold faster in March — they sat on the market for 36 days, down from February.
- First-time buyers made up about a third of the market.
- Cash buyers (often investors) bought about 1 in 4 homes.
- Foreclosures and short sales are still very low — only 3% of all sales.
The bottom line:
We’re in a weird in-between market. Rates are high, which is slowing things down. But inventory is growing, and prices aren’t skyrocketing anymore. If rates come down even a little, things could loosen up fast.
