Existing-home sales declined 3.6% month-over-month in March to a seasonally adjusted annual rate of 3.98 million units, the National Association of Realtors reported on Monday. Sales also fell 1% from a year earlier, signaling continued softness in the housing market.

"March home sales remained sluggish and below last year’s pace," said NAR Chief Economist Dr. Lawrence Yun. "Lower consumer confidence and softer job growth continue to hold back buyers."

Inventory Rises, But Remains Tight

Total housing inventory increased 3.0% from February to 1.36 million units, representing a 4.1-month supply. Despite the uptick, Yun said inventory remains below historical norms, estimating that an additional 300,000 to 500,000 homes are needed to normalize conditions.

Limited supply continued to support prices. The median existing-home price rose 1.4% year-over-year to $408,800, marking the 33rd consecutive month of annual gains and a record high for March.

Mortgage Rates Keep Pressure Elevated

The average 30-year fixed mortgage rate stood at 6.18% in March, according to Freddie Mac (OTC:FMCC), up from 6.05% in February.

Borrowing costs have remained elevated after rising in recent weeks amid inflation concerns and earlier geopolitical tensions that pushed energy prices higher, keeping potential buyers on the sidelines. The OECD expects U.S. inflation to reach 4.2% in 2026, while the Federal Reserve is widely expected to hold interest rates steady in the near term.

The strain is visible beyond data. RH CEO Gary Friedman recently warned of “the most dire housing market in decades,” citing tariffs, global tensions, and economic uncertainty.

Outlook Trimmed

NAR revised its 2026 outlook, now forecasting existing-home sales to rise 4%, down from its prior estimate. New-home sales are expected to remain flat, while home prices are projected to increase 4% for the year.

Sales declined across all four regions monthly. First-time buyers accounted for 32% of transactions in March, down from 34% in February.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.