March home drop to the slowest pace since 2009

Higher mortgage rates and more concern more economics create a weak beginning in an important spring housing market.

Sales earlier in March decreased by 5.9% from February to 4.02 million units for seasonally adjusted annual basis, reports the National Realtors Association. This is the slowest pace of March sales since 2009.

Sales were 2.4% lower than in March 2024 and dropped in all regions per month. In the West, they fell, the most possessive regions of the country decreased by more than 9%. The West, however, was the only region that saw a profit compared to last year because of the strong activity in the States of the Rock Mountains, where job growth is strong.

This count is based on the closure, so the contracts are probably signed in January and February, when the average rate on a popular 30-year fixed mortgage was more than 7%. According to Daily’s mortgage news, it did not fall 7% until February 20.

“The purchase and sale of the house in March remained sluggish with the affordability problems associated with high mortgage rates,” said Lawrence, the chief economist. “Housing mobility, currently on historical lows, signals a problematic opportunity for less economic mobility for society.”

Sales have fallen despite a sharp increase in available lists. At the end of March, there were 1.33 million units for sale, which is 20% compared to March 2024. Currently, the sales rates are equivalent to the 4-month delivery that is still on the lean side. The 6-month nutrition is considered a balanced market between the buyer and the seller.

More reserves and slower sales start chilled prices. The average price of an existing home sold in March was $ 403,700. This is still height for a month, but it is only 2.7% more than in March last year. This annual comparison has been decreased since December and has been the lowest income since August.

“In a sharp contrast to the markets of shares and bonds, the well -being at home in residential real estate continues to reach new heights,” Yun said. “With the help of real estate assets of $ 52 trillion, according to the federal reserve stream, each percentage of housing increases add more than $ 500 billion to the household balance.”

In March, for the first time buyers made 32% of the market, just like in March 2024. Historically, they make up about 40%.

Sales of all cash decreased to 26% with 28%, but investors are stable in 15% of sales.

Going forward, the realtors are already reporting the growth of canceled contracts in March, and given the volatility of the stock market in April, this may increase.

“The March numbers are bad, but they are likely to get worse,” said Robert Frick, a corporate economist from the Navy Federal Credit Union. “In addition to the existing high -pricing and high mortgage rates pressure, the target tariff prices are likely to rise from tariffs, and the growth of anxiety for inflation and jobs can increase the instinct to reduce many families.”