Summary

As the spring selling season picks up, the housing market appears to be loosening and rebalancing. In March, the number of homes for sale rose for the 17th consecutive month, and the number of new home listings was the highest March level in three years. Sellers are slowly returning to the market even as mortgage rates remain elevated.

However, homebuyers are taking their time as there were fewer homes under contract in March compared to March 2024. Home prices are holding steady, but more sellers are adjusting their asking prices to meet what buyers can afford.

Report

It appears the market is rebalancing as the spring season picks up, offering more supply, but with buyer demand showing signs of caution. Here are the key trends that shaped the housing market in March 2025:

• The number of homes actively for sale in March was up 28.5% compared to March 2024, giving buyers a greater selection of homes to choose from.
• Total home listing inventory, including both homes for sale and under contract, rose by 17.3% compared to March 2024. This is the 16th consecutive month the total home inventory has increased on an annual basis. However, the growth was slightly down from February due to a slowdown in pending home listings.
• Home prices in March remained unchanged from March 2024 at $424,900. Despite asking prices holding firm, more sellers are adjusting their prices.
  • In March, 17.5% of homes had price reductions, which is 2.5 percentage points higher than last year and the highest share for any March since 2016.
  • According to realtor.com data, this trend suggests that home sellers are becoming more responsive to shifting market demands.
• Home listings remained on the market slightly longer than in March 2024.
  • This March, the typical home for sale spent 53 days on the market, which is 3 days longer than in March 2024.
  • Homes have taken longer to sell for the 12th consecutive month compared to the same period last year.
  • However, homes are still selling faster than they did before the pandemic.
• March housing inventory increased for the 17th consecutive month.
  • According to realtor.com data, the US housing market continued to loosen, providing buyers with more options as sellers gradually returned to the market.
  • March had the highest level of new home listings in 3 years despite elevated mortgage rates.
  • However, fewer homes were going under contract compared to March 2024 in the nation\’s largest metro areas, and homes are spending more time on the market than they did a year ago.

Note: The overall trend indicates a gradual rebalancing of the housing market, with increased inventory and more price adjustments, but cautious buyer activity persists.

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