Existing Home Sales Hit 12-Month High as Inventory Returns

Sales of previously owned homes rose 9.5% in March to a seasonally adjusted annual rate of 4.38 million units, the highest level in 12 months, according to data released Tuesday by the National Association of Realtors. The gain reversed two consecutive months of declines and exceeded consensus forecasts of a 5.0% increase.

The strength came as more sellers entered the market. Total housing inventory at the end of March stood at 1.33 million units, up 22.9% from a year earlier. That represents a 3.6-month supply at the current sales pace, compared with 3.1 months in March 2025. A balanced market typically shows between four and six months of supply.

Lawrence Yun, chief economist at NAR, said the inventory expansion is finally showing up in transaction volume after two years of historically tight conditions. Yun attributed the shift to life-event sellers who could no longer defer listing, combined with a growing pool of owners whose equity positions have strengthened enough to offset moving to higher rates.

Regional data showed the Midwest led gains with an 11.2% month-over-month jump, followed by the South at 10.3%. The Northeast posted a more modest 6.1% gain, while the West advanced 8.4%. The national median existing-home sale price reached $407,300, up 5.2% from March 2025. That marks the 21st consecutive month of year-over-year price increases.

First-time buyers made up 29% of sales in March, up from 26% in February and matching the highest reading in over a year. Investor and second-home purchases accounted for 15%, down from 21% in the same month last year. All-cash transactions slipped to 26% of sales from 28% in February.

Properties typically stayed on the market for 34 days, shorter than the 42-day median recorded last year. Homes continued to sell below list price on average, with the final sale-to-list price ratio at 99.1%. Bidding wars remained concentrated in the $300,000 to $500,000 price tier, Realtor.com reported in a separate analysis.

The improved inventory picture has not translated into price relief. Yun said price gains are likely to moderate but not reverse as long as inventory remains below pre-pandemic norms of roughly 2 million units. Redfin chief economist Daryl Fairweather said the March jump looks encouraging but may partly reflect buyers rushing before the spring rate environment gets worse.