Home sales declined in March, according to the National Association of Realtors (NAR), but sellers still have reason to be optimistic. The median home price hit a record $403,700—up 2.7% from March 2024—marking 21 consecutive months of annual gains. Lawrence Yun, chief economist for the NAR, notes that real estate wealth is outperforming stocks and bonds. “With mortgage delinquencies near historic lows, the housing market is on solid footing,” he said, adding that slower price growth—just below wage increases—could help improve affordability.

Inventory on the Rise

Housing inventory showed signs of improvement in March after years of tight supply. Total inventory climbed 8.1% month over month and nearly 20% year over year to 1.33 million units. At the current sales pace, this represents a 4.0-month supply, up from 3.5 months in February. While higher inventory can mean more competition, motivated sellers with the right strategy can still attract serious buyers. However, affordability challenges remain due to high mortgage rates. According to Yun, “Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.”

Who’s Buying and What They’re Looking For

Despite affordability concerns, many buyers still see real estate as a smart investment. Homes sold more quickly in March, spending a median of 36 days on the market, down from 42 in February. First-time buyers accounted for 32% of purchases—up slightly from February and well above the record-low annual average of 24%. Cash sales dropped to 26%, down from 32% the month before. Investor activity remained steady at 15%.

Balancing Affordability and Opportunity

Affordability remains an issue, but mortgage rates have stayed below the 7% psychological threshold. Although sales declined 5.9% from February and 2.4% from March 2024, rising inventory and steady prices continue to draw committed buyers. “With real estate asset valuation at $52 trillion,” Yun notes, “each percentage point increase in prices adds over $500 billion to household wealth.” Sellers continue to build equity, while informed, patient buyers can still find long-term value.

Regional Sales Breakdown

• Northeast: Existing-home sales annual rate of 490,000; a decrease of 2% from February 2025 but unchanged from March 2024. The median sales price of $468,000 represented a 7.7% increase from March 2024.

• Midwest: Existing-home sales annual rate of 950,000; a decrease of 5% from February 2025 and 3.1% from March 2024. The median sales price of $302,100 represented a 3.5% increase from March 2024.

• South: Existing-home sales annual rate of 1.81 million; a decrease of 5.7% from February 2025 and 4.2% from March 2024. The median sales price of $360,400 represented a 0.6% increase from March 2024.

• West: Existing-home sales annual rate of 770,000; a decrease of 9.4% from February 2025 but a 1.3% increase from March 2024. The median sales price of $621,200 represented a 2.6% increase from March 2024.