Like much else about the U.S. economy, tariffs and broader uncertainty are weighing on home sales amid the industry's crucial spring season.

In March, CNBC reported more than 375,000 homes were newly listed on the market — an increase of nearly 9% compared to the same time last year, according to Zillow Group Inc. research. But newly pending sales were flat compared to last year, despite slightly lower average mortgage rates in March 2025 compared to a year ago.

That's despite several aspects of the market — including price cuts hitting their highest point in at least seven years — shifting to favor buyers.

Inventory rose to 1.15 million homes in March, an increase of 19% from last year and the most inventory for buyers in the month of March since 2020, according to Zillow. Inventory is now about 24% below 2018 and 2019 averages for the spring housing market.

During the four-week period that ended April 13, the median home-sale price was down from the same time a year ago in 10 of the 50 most populous U.S. metro areas, most especially in Texas and Florida, according to Redfin.

That's because supply is outpacing demand in most places, especially in hot Sun Belt metros that've seen a lot of homebuilding and in-migration that's cooled since its pandemic peak.

Homes today are also sitting on the market for longer. The typical home that went under contract in March had been listed for 47 days, according to Redfin. That's the slowest pace tracked by Redfin since the Covid-19 pandemic.

These factors are adding up to a sluggish spring homebuying season, usually the start of the housing market's most active time of year. And while the U.S. housing market is finally shifting to favor buyers, the underpinnings for that change aren't necessarily in buyers' favor.

Story Date: May 19, 2025