Existing home sales fell 3.6% month-over-month and 1.0% year-over-year to a seasonally adjusted annual rate of 3.98 million in March, according to the National Association of Realtors’ Existing Home Sales Report.
“March home sales remained sluggish and below last year’s pace,” NAR Chief Economist Dr. Lawrence Yun said. “Lower consumer confidence and softer job growth continue to hold back buyers.”
Unsold inventory increased 3.0% in March to 1.36 million units, a 4.1 months’ supply, according to the report. Despite the increase, “inventory remains a major constraint on the market,” Yun said. “The inventory-to-sales ratio, or supply-to-demand ratio, is below historical norms. An additional 300,000 to 500,000 homes for sale would help bring the market closer to normal conditions and allow consumers to make purchase decisions without feeling rushed.”
Due to the limited inventory, the median sales price of an existing home hit a new record high in March at $408,000, a 1.4% increase year-over-year. “That price growth has helped the typical homeowner accumulate $128,100 in housing wealth over the past six years,” Yun added.
NAR predicts median home prices and existing home sales will both rise 4% in 2026, while new home sales will remain flat.
Read the full report here.
