US home sales fall in March, marking a slow start to the spring homebuying season

Sales of previously occupied U.S. homes fell in March to their slowest pace nine months, as easing mortgage rates failed to motivate home shoppers during what’s traditionally been the busiest time of the year for the housing market.

Existing home sales fell 3.6% last month from February to a seasonally adjusted annual rate of 3.98 million units, the National Association of Realtors said Monday.

Sales also fell 1% compared with March last year, weighed down by declines in the Northeast and Midwest. The latest sales figure fell short of the roughly 4.06 million pace economists were expecting, according to FactSet.

“Lower consumer confidence and softer job growth continue to hold back buyers,” Lawrence Yun, NAR’s chief economist, said in a statement.

A measure of Americans’ short-term expectations for their income, business conditions and the job market fell 1.7 points to 70.9, remaining well below 80, a marker that can signal a recession ahead. It’s the 14th consecutive month that reading has come in under 80.

Sales have been hovering close to a 4-million annual pace now going back to 2023. That’s well short of the 5.2-million annual pace that’s historically been the norm.

Despite the pullback in sales, home prices continued to rise last month. The national median sales price increased 1.4% in March from a year earlier to $408,800. Home prices have risen on an annual basis for 33 months in a row.

The U.S. housing market has been in a slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes remained stuck last year at 30-year lows. They have remained sluggish so far this year, declining in January and February versus a year earlier.