March home sales dropped 5.9%, marking the steepest decline since 2009, as high mortgage rates and economic uncertainty dampen buyer activity.
At a Glance
- March home sales fell 5.9% to 4.02 million units
- 30-year mortgage rates averaged 6.81%
- Inventory rose 8.1% to 1.33 million homes
- Median home price reached $403,700
- Experts predict further market weakening
Sales Slump Amid High Rates
In March 2025, existing-home sales declined by 5.9% from February, reaching a seasonally adjusted annual rate of 4.02 million units—the lowest March level since 2009. citeturn0news24 The drop surpassed economists’ expectations and marked a 2.4% decrease compared to March 2024.
The downturn is attributed to elevated mortgage rates and economic uncertainty. The average rate for a 30-year fixed mortgage stood at 6.81% in April, up from 6.62% the previous week. citeturn0search1 These high borrowing costs have deterred potential buyers, leading to a sluggish spring market.
Watch CNBC’s report on the housing market slowdown at March Home Sales Drop to Lowest Since 2009.
Inventory Up, But Buyers Hesitate
Despite an 8.1% increase in housing inventory to 1.33 million units, sales continued to decline. This rise in inventory represents a 4.0-month supply at the current sales pace, up from 3.2 months a year ago. citeturn0search1 However, the increased availability has not translated into higher sales, as affordability challenges persist.
The median existing-home price climbed to $403,700 in March, a 2.7% increase from the previous year and the 21st consecutive month of year-over-year price gains. citeturn0search1 This price growth, coupled with high mortgage rates, continues to strain buyers’ budgets.
Outlook Remains Uncertain
Experts warn that the housing market may face further challenges. Robert Frick, corporate economist at Navy Federal Credit Union, stated, “March numbers are bad, but they’re likely to get worse.” citeturn0search14 The combination of high home prices and mortgage rates is expected to continue suppressing sales.
Lawrence Yun, Chief Economist at the National Association of Realtors, highlighted the broader implications: “Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.” citeturn0search1 As economic pressures such as tariffs, inflation, and job instability persist, the housing market’s recovery remains uncertain.
