Home buyer
Housing
Inflation
International
Price Rise
Property Price
Real Estate
Real Estate Prices
US
USA
Zillow Real Estate Report
U.S. Housing Market Stalls in March as Listings Outpace Buyer Demand
March 2025 brought a slowdown in U.S. home price growth, even as mortgage rates reached their lowest point of the year. Traditionally a busy month for homebuyers, this March saw a mismatch between the number of sellers and actual buyer demand, highlighting ongoing affordability issues and economic uncertainty.
According to Zillow’s latest housing market report, over 375,000 homes were listed for sale in March—a nearly 9% increase compared to March 2024. While still 19% below pre-pandemic norms, the uptick signals a steady return to typical seasonal trends. However, buyer interest did not match the surge in listings. Only 265,000 homes went under contract, leaving 110,000 properties unsold and pushing total inventory to 1.15 million homes, a 19% rise year-on-year and the highest March inventory since 2020.
Despite the increased inventory and lower mortgage rates—averaging 6.65% in March compared to 6.82% a year ago—newly pending sales remained flat. Home value appreciation also slowed, with typical prices rising just 0.2% from February, marking the slowest March growth since at least 2018. In contrast, March 2024 saw a 0.7% gain. Several markets, including major cities in Florida and San Antonio, even recorded declining prices.
On a year-over-year basis, national home values rose by only 1.2%, a modest increase that underscores the pressure on buyers. Affordability remains a major hurdle: even with a 20% down payment, monthly mortgage payments now consume 35.3% of the median household income, well above the 30% affordability threshold. The average down payment is now around $72,000, posing a significant barrier for first-time buyers.
In response, sellers have started adjusting prices. Over 23% of listings received price cuts in March—the highest March figure since 2018. According to Zillow Chief Economist Skylar Olsen, many first-time buyers are particularly affected by today’s housing challenges. “More sellers came out to test their luck as rates ticked down in March, but home sales didn’t keep up,” Olsen said. “Buyers—especially first-timers without equity to pour into their down payment—continue to struggle with affordability and now face even greater uncertainty in a turbulent economy.”
