Housing Market Slumps – Worst March Since 2009

Home sales fell 5.9% in March compared to February, with only 4.02 million homes sold.

Housing Market Slumps – Worst March Since 2009

If you’ve been thinking about buying a house or watching the real estate market from the sidelines, here’s the latest: U.S. home sales just dropped hard — the lowest March numbers we’ve seen since the 2009 financial crisis.

The Numbers: Home sales fell 5.9% in March compared to February, with only 4.02 million homes sold (seasonally adjusted). That’s the slowest March we’ve seen in over 15 years, according to the National Association of Realtors (NAR).

What’s Behind the Drop? Here’s what’s holding the market back:

• High Mortgage Rates: The average 30-year mortgage rate is 6.83% — way up from the 2-3% range we saw a few years ago.
• Still-Expensive Prices: Even with sales slowing, the median home price hit $403,700 — the highest ever for March.
• More Inventory: More homes are up for sale (+8.1%), but buyers are backing off due to those higher rates and prices.

Region-by-Region Breakdown:

• Northeast: Down 2% from last month
• Midwest: Down 5%
• South: Down 5.7%
• West: Got hit the hardest - down 9.4%

What It Means for Investors and First-Time Buyers

This could be a setup for opportunity later in the year if rates cool off or sellers start cutting prices. But for now, many would-be buyers are sitting out.

Quote from NAR’s chief economist: “Affordability is still the biggest challenge. High mortgage rates are keeping both buyers and sellers on the sidelines.”

The Bottom Line The housing market is in a weird spot: more homes available, fewer buyers biting. If you're a long-term investor, this is one of those times to stay alert — major shifts like this can create chances if you're patient and strategic.

As a real estate investor, I’m on the sidelines for now - but I’m eyeing summer for a possible return, especially if rates cool off. For fix-and-flip deals, it’s simple: if the numbers work, the deal works. It’s all about what makes the dollar move. Happy hunting.