More homes are hitting the market as lower mortgage rates unlock three years of pent-up demand

Home sales jumped 25.2% month-over-month in March to 300,398, the highest volume since late 2022, as more buyers and sellers re-entered the market. Pending listings rose 29.8% month-over-month to 281,546, the second-largest monthly total since May 2022, while new listings climbed 35.6% to 384,854, reversing years of suppressed supply. Total for-sale homes reached 1.23 million, up 9.5% from February and 4.2% from a year earlier. The shift follows lower mortgage rates in early 2024 and the release of three years of pent-up demand, according to Zillow Chief Economist Mischa Fisher. Daily page views per listing surged, signaling stronger buyer interest than in recent dormant seasons. The largest inventory gains occurred in Raleigh (+26%), Seattle (+23.8%), Louisville (+23.4%), Indianapolis (+15.6%), and Minneapolis (+15.1%). Only 10 of the 50 tracked markets saw declines, led by Jacksonville (-11.4%), Miami (-8.4%), Hartford (-7.5%), and San Francisco (-7.1%).