Residential Real Estate News
U.S. Homes Sold at Slowest Pace in 6 Years in March, Demand Sluggish
Homes Take Longer to Sell as Price Growth Decelerates
New data from Redfin reveals that the typical U.S. home that went under contract in March 2025 spent 47 days on the market -- the longest median time for any March since 2019. By contrast, homes were selling in less than half that time during the height of the pandemic's homebuying surge.
March 2025 marked five years since COVID-19 was declared a pandemic, and several housing market metrics are now reverting to levels seen in the early days of the outbreak, when buyer activity was more subdued. In March, just 27% of homes sold above asking price -- the lowest share for that month since 2020.
Homes are lingering longer on the market and attracting fewer offers as supply continues to rise, buyer demand remains tepid, and some properties are being listed at unrealistic prices. Economic uncertainty and high borrowing costs are also contributing to buyer hesitation.
On the Bright Side for Buyers: Price Growth Is Cooling
The median U.S. home-sale price in March was $431,057 -- up 2.5% from a year prior. This represents the slowest annual increase since September 2023. As inventory expands, sellers are losing some of their negotiating leverage since buyers have more options. However, many sellers are still pricing homes aggressively. According to Redfin agents, list prices are rising faster than final sale prices, leaving overpriced properties sitting on the market.
"There's a growing disconnect between what sellers hope to get and where the market is heading," said Redfin Senior Economist Elijah de la Campa. "With tariff concerns and broader economic uncertainty weighing on buyers, sellers who fail to adjust their expectations may see their homes linger unsold in the coming months."
In March, the typical home sold for about 1% below its asking price.
Housing Inventory Hits a Five-Year High
Active listings -- the total number of homes on the market -- reached a five-year high in March, rising 0.1% from February (seasonally adjusted) and 14.1% year over year. New listings increased as well, climbing 0.7% month over month and 6% from March 2024, marking the highest level since July 2022.
Alicia Grifaldo, a Redfin Premier agent in Houston, noted a noticeable uptick in listing consultations compared to buyer inquiries. "Many people who bought in 2021 and 2022 are selling because they can't keep up with property taxes and insurance costs. Since they purchased at market highs, they're trying to price homes to recoup their investment," she said. "With more sellers and fewer buyers, competitive and realistic pricing is crucial right now."
Notably, new listings surged more than average in both Los Angeles (+23.5% year over year -- the biggest jump nationally) and Washington, D.C. (+15.8%). In L.A., this may reflect homeowners listing properties to meet demand from families displaced by January's wildfires. In D.C., a wave of federal layoffs could be fueling the uptick in listings.
Home Sales Remain Below Pre-Pandemic Levels
Pending home sales in March rose 1.7% from February -- the largest monthly gain in six months (seasonally adjusted) -- but were essentially flat compared to a year earlier (-0.01%). Closed home sales declined roughly 1% both month over month and year over year. Existing home sales, which track finalized transactions of previously owned homes, slipped 1.3% from February and 0.4% from March 2024 to a seasonally adjusted annual rate of 4.15 million -- the lowest in six months.
All three key sales indicators -- pending, closed, and existing home sales -- remain below pre-pandemic norms. Elevated mortgage rates continue to be a major drag on market activity. In March, the average 30-year fixed mortgage rate was 6.65%, the lowest since October but still more than twice the record lows seen during the pandemic.
