US Existing Home Sales Drop Significantly in March

In a concerning trend for the housing market, existing home sales in the United States fell by 5.9% in March compared to the previous month, reaching a seasonally adjusted annual rate of 4.02 million, as reported by the National Association of Realtors (NAR) on Thursday. This marks a 2.4% decrease from the same period last year.

Price and Inventory Trends

Median prices for existing homes across all housing types saw a modest year-over-year increase of 2.7%, settling at $403,700. Meanwhile, the total housing inventory at the end of March experienced a significant boost, with 1.33 million units available. This represents an 8.1% rise from February and a 19.8% increase compared to March 2024.

Expert Insights on the Market Slowdown

"The sluggish pace of home buying and selling in March can be attributed to the daunting affordability challenges posed by high mortgage rates," explained Lawrence Yun, NAR Chief Economist. He further highlighted the concerning link between historically low residential housing mobility and reduced economic mobility for society at large.