The spring housing season is off to a dynamic yet complex start, as the latest March Housing Trends Report from Realtor.com reveals a notable rise in inventory — and a simultaneous cooling in buyer enthusiasm.
New listings climbed 10.2% year-over-year, marking the highest March increase in three years. Total active listings surged for the 17th consecutive month, a sign that sellers are returning to the market in greater numbers. But despite the inventory bump, prospective buyers seem to be hesitating.
"The spring housing season is beginning with more sellers and a growing number of homes for sale," said Danielle Hale, Chief Economist at Realtor.com. "But the high cost of buying coupled with growing economic concerns suggest a sluggish response from buyers in early spring. We're seeing a market that's rebalancing, offering more choices for shoppers.”
Pending home sales — a forward-looking indicator of buyer activity — fell 5.2% year-over-year across the nation’s largest metro areas. Of the 44 metros tracked, 36 posted annual declines. Notable drops occurred in Jacksonville (-15.1%), Miami (-13.7%), and Virginia Beach (-14.2%), all areas with specific economic or demographic sensitivities, such as large populations of federal workers.
Some regions defied the trend, including San Jose (+6.4%), Grand Rapids (+6.1%), and Sacramento (+4.6%), suggesting stronger local demand or tighter inventory constraints.
While the national median list price held relatively flat at $422,450 — a minor 0.1% dip from last year — a growing share of sellers are adjusting their expectations. In March, 17.4% of active listings featured price reductions, the highest March percentage since 2016.
Markets like Phoenix (32.6%), Tampa (28.9%), and Jacksonville (27.7%) led in price cuts, reflecting either overstocked inventory or waning demand. In contrast, Buffalo (5.4%), Hartford (5.5%), and New York City (7.0%) had the lowest share of reductions, indicating firmer seller leverage and tighter supply.
The inventory spike was particularly sharp in the West and South. Cities like San Jose (+67.9%), Las Vegas (+67.8%), and Denver (+67.3%) posted the largest year-over-year gains. In total, 18 of the top 50 metro areas now have inventory levels that surpass 2019.
Yet nationally, supply remains 20.2% below the pre-pandemic average (2017–2019). The Northeast continues to trail furthest behind, with some areas nearly a third below typical levels — aligning with broader research highlighting a persistent construction shortfall in the region.
Despite current caution, the market outlook remains cautiously optimistic.
“Recent improvements in mortgage rates bode well for the later spring and early-summer housing season,” Hale added, “as long as economic concerns settle and don't knock buyers off course.”
Sellers hoping to attract buyers in this recalibrating market may need to weigh pricing strategies carefully, particularly with the mid-April “Best Time to Sell” window approaching — a period traditionally marked by heightened seller competition.
