A “for sale” signs Miami, Florida, US stands in a house on 16 April 2025.
Marco Bello | Roots
The high mortgage rates and anxiety over the comprehensive economy are creating for a weak start for all important spring housing markets.
According to the National Association of Realters, the sale of houses already owned in March increased to 4.02 million units at 4.02 million units from February to 4.02 million units on an annual basis. This is the speed of selling the slowest march since 2009.
The sales were 2.4% less than March 2024 and slipped in all areas month-by-month. They fell the most difficult in the West, the country’s largest region, more than 9%. West, however, was the only area to see a year-on-year profit due to strong activity in Rocky Mountain states, where the increase in job is strong.
This calculation is based on closure, so the possibility of contract probability in January and February is likely to have a possibility of contracts signed, when the average rate on the popular 30-year fixed mortgage was more than 7%. According to the mortgage news daily, it did not fall below 7% till 20 February.
NAR chief economist Lawrence Yun said, “Buying and sales in March remained sluggish due to the strength challenges related to high mortgage rates.” “Residential housing mobility, currently on historical climb, indicates the possibility of low economic mobility for society.”
The sales collapsed despite a rapid increase in the available listing. At the end of March, there were 1.33 million units for sale, an increase of about 20% from March 2024. At the current sales speed, it is equal to a 4 -month supply, which is still on the lean side. The 6 -month supply is considered a balanced market between the buyer and the seller.
More inventory and slow sales prices are getting a cold. The average price of the current house sold in March was $ 403,700. It is still an all -time high for the month, but it is only 2.7% from the last March. This annual comparison has been shrinking since December and has the smallest benefit since August.
“Unlike stock and bond markets, domestic money in residential real estate continues to reach new heights,” said this. “In 52 trillion dollars with real estate asset valuations, according to the Federal Reserve Flow of Fund, each percentage point in home prices adds more than $ 500 billion to the domestic balance sheet.”
For the first time in March, buyers created 32% market in March, only in March 2024. Historically they make about 40%.
All-cash sales fell from 28% to 26% a year ago, but investors remained stable at 15% of the sales.
Given further, realtors are already reported to increase the canceled contracts in March, and, given the volatility of the stock market in April, it may increase.
“March numbers are bad, but they are likely to deteriorate,” said corporate economist Robert Fri with the Navy Federal Credit Union. “In addition to high prices and existing pressures of high mortgage rates, prices for home furnishing will soon increase due to tariffs, and the growing anxiety among consumers on inflation and jobs may increase the instinct of Hankal being already felt by many families.”
