Home price growth rose 0.2% from February to March—the slowest growth for March since 2018, according to Zillow's March 2025 Market Report.
March’s inventory saw the highest year-over-year increase since March 2020. From March 2024 to March 2025, inventory increased by 19% to 1.15 million homes.
"More sellers came out to test their luck as rates ticked down in March, but home sales didn't keep up,” Zillow Chief Economist Skylar Olsen said in a statement. “Buyers—especially first-timers without equity to pour into their down payment—continue to struggle with affordability and now are facing even higher levels of uncertainty.”
Newly pending sales were essentially flat compared to March 2024, even as average mortgage rates were lower in March at 6.65%, compared with 6.82% in March 2024.
Sellers cut prices at record rates to help bridge the gap to buyers. More than 23% of listings on Zillow received a price cut in March.
Read the full report here.
