March 2025 Housing Market Update: 5 Key Takeaways for Homebuyers and Sellers
As we move through the busy spring season, the March housing reports show a shifting market. Whether you're buying or selling, understanding what's happening right now can help you make better-informed decisions. Here's a simplified breakdown of the top five takeaways from March 2025.
1. Existing Home Sales Slowed Down
Sales of previously owned homes fell 5.9% from February. This is the slowest pace for March in over a decade. Why the slowdown? High mortgage rates—hovering around 6.8%—combined with elevated home prices are making affordability more challenging for buyers.
2. New Home Sales Picked Up
On the flip side, sales of newly built homes increased by 7.4% month-over-month. Builders are offering creative incentives like rate buydowns and covering closing costs to attract buyers. Many are also focusing on smaller, more affordable homes to meet demand.
3. Inventory Is on the Rise
There are now more homes available on the market—inventory jumped 8.1% in March compared to February, totaling 1.33 million homes for sale. This gives buyers more options and reduces some of the pressure that existed when inventory was much tighter.
4. Home Prices Are Still Climbing—but Slower
The median price for an existing home rose to $403,700, a 2.7% increase year-over-year. While prices are still going up, the pace is slowing. This could be an early sign of price stabilization in certain markets, giving buyers a little more breathing room.
5. Homes Are Sitting on the Market a Bit Longer
In March, homes were on the market for an average of 36 days, compared to 33 days a year ago. That’s a small change, but it reflects a shift—buyers are taking a little more time to make decisions, and sellers may need to be more flexible with pricing and terms.
What This Means for You
For buyers, the increase in inventory and slower price growth are welcome signs. If you've been waiting for the right moment to buy, this may be a good time to explore your options—especially before rates move again.
For sellers, demand is still there, but buyers are more price-conscious. Make sure your home is priced competitively and prepared to stand out in a market where buyers have more choices.
Whether you're buying your first home or planning your next move, talk to a mortgage professional to better understand your numbers and lock in a strategy that works in today's market.
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Source: HousingWire
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