Low inventory and high prices keep homebuyersy out of the spring season

Existing-home sales decreased 3.6% month-over-month and 1% year-over-year in March, according to the National Association of Realtors. The housing market remains in a prolonged sales slump. The median existing-home sales price hit a March record of $408,800, marking the 33rd consecutive month of year-over-year price increases. In the Northeast, the median price for a resale home was $494,500, up 5.7% from March 2025. In the Midwest, the Midwest median price was $315,500, up 4.9%. In the South, the median price was $362,600, up 0.8%. In the West, the median price was $613,400, down 1.3%.

Inventory is currently at a four-month supply, which is below the balanced market threshold of five to six months of supply. Potential sellers with lower mortgage rates are staying on the sidelines, which creates a lock-in effect that caps inventory.

Lackluster sales in the first quarter, rising mortgage rates, a middling jobs market, and low consumer confidence led the National Association of Realtors to revise its 2026 existing-homes sales forecast from a 14% increase down to a 4% increase.