Latest U.S. Housing News

Sales of previously occupied U.S. homes fell in March to their slowest pace nine months. Reduced rates on mortgages (a little over 6%), and prices that are leveling off (a little over $408k), failed to motivate home shoppers during the usually busiest time of the year for home buying.

Sales fell 1% compared to March of 2025, with larger declines in the Northeast and Midwest. Consumer confidence and soft job growth may be holding back some buyers – or maybe, it’s simply prices that remain too high for average consumers.

Sales have been hovering close to a 4-million annual pace for three years, well short of the 5.2 million pace that’s historically the norm. With sales down, one would think prices would also come down to increase sales. Not so fast!

There were 1.7 million homes available at the end of March, up 2.3% from a year ago, but still short of the average 2 million homes for sale prior to the pandemic. In addition, the latest inventory translates to just a 4.1-month supply at the current sales pace. A five to six month supply is considered a balanced market between buyers and sellers. The dearth in homes will create competition among those who can afford to buy, keeping prices high in many places.

The supply and demand equation is unlikely to balance anytime soon. Many buyers can’t afford what they want or need, and sellers who don’t need to sell will wait it out. If you want a bargain, you’ll need to find someone who needs to sell. Even then, competition by those with money may raise the buying price higher than the asking price.

Home prices have risen on an annual basis for nearly three years straight and sales of previously occupied U.S. homes remained at 30-year lows. The good news is that not all home markets are created equal. In some metro areas, prices have fallen slightly. Do your homework.

Recent rates on a 30-year mortgage had ranged from 5.98 - 6.16%, but ticked higher last month to 6.37%, according to mortgage buyer Freddie Mac. That’s better than the 6.6% I paid on my first house more than 25 years ago.

Some experts had been expecting a 14% increase in sales this year, which quite honestly, I think was extremely wishful. With the latest world events, they now expect about a 4% increase in sales – something I consider far more reasonable. I’m not a real estate expert, but my decades of life experience, and the common sense that it brings, is often times more accurate than the “experts”. Again, do your own homework.

The answer for buyers is mostly beyond their control. Prior to the housing bubble burst of 2008, the nation was adding 50% more homes to the market each year than today’s pace. More homes need to be built, especially small homes for first-time buyers and retirees. State and local governments need to reduce building codes and risk their reelection by opposing the NIMBY’s (not in my back yard) home owners who reject affordable housing built near their high-priced mansions.

Source used: Associated Press