Buyer activity hit a significant lull in March, as high prices and cautious consumer sentiment created a “perfect storm” of headwinds.

Annualized Rate: Existing home sales fell 3.6% in March 2026 to a seasonally adjusted annual rate of 3.98 million units. This marks the lowest level since June 2025.
Missing Expectations: This volume trailed the market’s projected target of 4.07 million units, signaling that the spring buying season is off to a sluggish start.
The “Affordability Gap”: Despite the sales drop, the median existing-home price reached a record high for the month of March at $408,800, marking 33 consecutive months of year-over-year increases.

2. Rising Days on Market (DOM)

While the spring season usually accelerates sales, homes are generally lingering longer on the market compared to the peak frenzy years.

Current Median DOM: Nationally, homes spent a median of 51 days on the market in mid-April.
Year-Over-Year Change: This is a slight increase of 1 day compared to April 2025, but a significant departure from the 30-day averages seen during the 2022-2023 cycle.
Buyer Leverage: The gradual deceleration suggests that inventory is no longer being instantly “absorbed,” giving buyers more room to negotiate.

3. Inventory vs. Demand (Months of Supply)

Supply is finally starting to build as demand cools, moving the market away from extreme seller-favorable conditions.

Total Inventory: Housing inventory rose to 1.36 million units in March, up 3.0% from the previous month.
Months of Supply: The supply of unsold inventory reached 4.1 months.
- Context: This is an increase from the 3.8-month supply recorded in February. While a “balanced” market is typically 5 to 6 months, the trend toward 4+ months indicates the tightest phase of the inventory crisis may be easing.
New Home Supply: In the new construction sector, supply has been much higher, reaching as high as 9.7 months earlier this year.

To keep inventory moving, sellers and builders are being forced to offer concessions.

Price Reductions: More than one-third (34.2%) of U.S. home sellers reduced their asking prices recently—the highest share for that period in over a decade.
Average Discount: Among those who cut prices, the average reduction was approximately $40,915 (7.3%).
D.R. Horton Inventory: The nation’s largest builder reported that as of March 31, 2026, they held 38,200 homes in inventory, of which 22,900 were unsold.
Incentives: Builders continue to rely on aggressive mortgage rate buydowns (with some reaching down to 5%) to counteract a national 30-year fixed rate that averaged 6.18% in March.