The latest March 2025 housing market data is in — and it paints a picture of a market in flux. Sales of previously owned homes fell 5.9% from February to a seasonally adjusted annual rate of 4.02 million units, according to the National Association of Realtors (NAR). That marks the slowest March sales pace in 16 years, since the aftermath of the 2008 financial crisis.
📊 March 2025 Housing Market Highlights
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Sales Volume:
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Down 5.9% month-over-month (MOM)
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Down 2.4% year-over-year (YOY)
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Regional Breakdown:
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All regions saw monthly declines.
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The West, the nation’s most expensive region, fell the hardest with a -9% MOM drop.
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Inventory:
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1.33 million homes for sale at the end of March.
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That’s an increase of nearly 20% YOY.
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The market now has a 4-month supply of listings — still short of the 6-month supply typically seen in a balanced market.
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Home Prices:
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Median home price rose 2.7% YOY, one of the smallest increases since the pandemic.
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Buyer Demographics:
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First-time buyers made up 32% of purchases — well below the historical average of 40%.
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All-cash deals dropped from 28% to 26% YOY.
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Investor purchases remained steady at 15% of sales.
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🏘️ Why the Slowdown?
Despite the biggest inventory surge in years, buyers are holding back. Mortgage rates remain elevated around 6.6%–7%, and economic uncertainty (including the recent tariff announcements and rising recession fears) has made buyers more cautious.
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Higher inventory is typically good news for buyers, offering more options and negotiation power.
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Sellers, meanwhile, face an environment where price appreciation is cooling and days on market are lengthening.
💡 What This Means for Buyers and Sellers
✅ For Buyers:
The silver lining is clear: more homes for sale, less competition, and negotiation opportunities. Buyers who are ready to act strategically could snag better deals than they would have six months ago.
✅ For Sellers:
It’s time to adjust expectations. While demand hasn’t disappeared, today’s buyers are choosier and have more leverage. Pricing your home correctly and presenting it well are now more critical than ever.
✅ For Agents:
This is the season to double down on education and strategy. Show hesitant buyers the opportunities created by rising inventory, and help sellers understand how to position themselves competitively. Those who lead with expertise — not panic — will come out ahead.
🏡 Final Thoughts
March’s numbers confirm we’re in a transitioning housing market — not a crash, but not a frenzy either. More inventory is coming online, and if rates ease later this year, pent-up buyer demand could spark a stronger second half.
For now, patience, preparation, and proactive advice are the name of the game.
📞 Contact Abdo Pierre Faissal for unparalleled real estate service.
📧 [email protected] | 📲 310-620-1038