The spring homebuying season typically brings renewed energy to the U.S. real estate market—but March 2025 told a different story. Elevated mortgage rates, rising home prices, and economic uncertainties have all contributed to a notable slowdown, especially in the existing home sector. Whether you’re a potential homebuyer, seller, or simply tracking trends, here’s what you need to know about how the U.S. real estate market performed in March 2025.
📉 Existing Home Sales Hit a Low
In March, existing home sales fell sharply by 5.9%, landing at a seasonally adjusted annual rate of 4.02 million units—the weakest March showing since 2009 (AP News). This drop reflects both higher borrowing costs and waning consumer confidence, as mortgage rates hovered around 7% early in the year.
Economic uncertainty added further pressure, with trade policies and tariffs making headlines and casting a shadow over buyer sentiment (Reuters).
🏘️ Inventory Grows, but Homes Sit Longer
March saw an 8.1% rise in housing inventory, bringing total available homes to 1.33 million units—a 19.8% increase from March 2024. But more options didn’t necessarily translate to faster sales.
Homes averaged 36 days on the market, up from 33 days the year before (Reuters).
The median existing home price rose 2.7% year-over-year to $403,700, pushing the affordability ceiling higher for many Americans (Reuters).
👥 Who’s Buying? Fewer First-Timers, Fewer All-Cash Deals
First-time buyers represented 32% of March purchases, well below the 40% benchmark considered healthy for a balanced market. All-cash transactions also dipped, accounting for 26% of deals compared to 28% a year ago (Reuters).
🔮 Market Outlook: What’s Ahead?
Looking forward, experts expect continued weakness in the existing home sector as affordability remains a key barrier. Though new home sales have seen some gains—thanks in part to builder incentives—the broader market is still navigating headwinds from high interest rates and cautious economic sentiment (Reuters).
💬 Let’s Talk Real Estate
Are you feeling the effects of this market shift? Whether you’re looking to buy, sell, or just watch from the sidelines, drop your thoughts in the comments below! Have you noticed changes in your local housing market? Let’s start the conversation. 👇
🧾 Sources
-
Reuters: U.S. Existing Home Sales Fall More Than Expected in March 2025
-
AP News: March Home Sales Slowed in a Lethargic Opening to the Spring Buying Season
🏡
Partners Realty Group
(865) 789 – 6677
“Guiding You Home in a Shifting Market – Smarter Moves, Better Results.”
