Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting harder in recent times.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 28.5% annually in March, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and the share of listings with price reductions remains elevated.
Find your lowest rate. Start hereActive listings make huge leap in March
In a promising sign for prospective borrowers, active home listings surged 28.5% annually in March, according to Realtor.com’s Housing Report.
A typical day during the month yielded 892,561 for-sale listings and marked the 17th straight month — and 31th of the past 37 — with year-over-year inventory growth. The listing count rose above February's 847,825 while overshadowing March 2024's 694,820. Though active listings are trending upwards, they still lag "normal" prepandemic levels.
“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. Data also suggest that pricing competitively is key for sellers in today’s environment. Recent improvements in mortgage rates bode well for the later spring and early-summer housing season, as long as economic concerns settle and don’t knock buyers off course.”
Regionally, the West saw active listings grow most at a 40.3% annual rate. Then came the South at 31.1%, Midwest at 17.7% and Northeast at 11.3%.
Among the 50 largest U.S. housing markets, San Jose, Calif., led the way with a 67.9% year-over-year gain in active listing count. Jumps of 67.8% in Las Vegas, 67.3% in Denver, 66.6% in San Diego, and 64% in Washington, D.C., rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest rises in listing count in March:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Listing Price vs March 2019 | Median Days on Market | Price– Reduced Share |
| San Jose, Calif. | 67.9% | $1,388,944 | -6.2% | 26.0% | 22 | 8.9% |
| Las Vegas | 67.8% | $469,945 | 0.0% | 50.3% | 44 | 21.7% |
| Denver | 67.3% | $585,000 | -5.6% | 13.5% | 35 | 24.4% |
| San Diego | 66.6% | $950,000 | -4.8% | 38.7% | 36 | 16.3% |
| Washington,DC | 64.0% | $604,900 | -0.8% | 28.3% | 24 | 12.4% |
| Sacramento, Calif. | 52.1% | $625,000 | -1.6% | 31.2% | 36 | 16.6% |
| Los Angeles | 51.8% | $1,179,000 | 2.5% | 53.0% | 42 | 13.3% |
| Tucson, Ariz. | 50.8% | $399,000 | -0.9% | 35.8% | 50 | 24.2% |
| Riverside, Calif. | 50.2% | $599,999 | 0.2% | 47.5% | 51 | 17.8% |
| Charlotte, N.C. | 47.4% | $425,000 | 3.4% | 24.5% | 43 | 21.2% |
| Raleigh, N.C. | 47.4% | $445,000 | -1.1% | 22.3% | 44 | 19.7% |
| Orlando, Fla. | 45.8% | $419,800 | -4.4% | 36.5% | 60 | 24.7% |
| Atlanta | 44.3% | $400,000 | -2.4% | 23.9% | 47 | 20.7% |
| San Francisco | 43.2% | $950,000 | -4.9% | 3.6% | 31 | 11.6% |
| Seattle | 40.3% | $750,000 | -2.3% | 23.3% | 31 | 11.2% |
On the other end of the spectrum, Buffalo, N.Y. gained the least for-sale inventory, losing 2.1% from March 2024. The Big Apple came next, with a 3.3% rise in active listings, followed by 7.7% in Milwaukee, 9.5% in Detroit and 10.1% in Minneapolis.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Listing Price vs March 2019 | Median Days on Market | Price– Reduced Share |
| Buffalo, N.Y. | -2.1% | $260,000 | -3.7% | 32.9% | 49 | 5.4% |
| New York | 3.3% | $780,000 | 1.3% | 38.7% | 48 | 7.0% |
| Milwaukee | 7.7% | $375,000 | 2.8% | 38.4% | 31 | 9.0% |
| Detroit | 9.5% | $245,000 | 2.1% | 5.2% | 42 | 11.5% |
| Minneapolis | 10.1% | $445,900 | 0.2% | 16.5% | 33 | 10.2% |
| Chicago | 10.6% | $360,000 | -4.0% | 9.9% | 36 | 10.7% |
| Pittsburgh | 10.8% | $239,000 | 1.8% | 35.9% | 62 | 13.8% |
| Hartford, Conn. | 11.2% | $449,900 | 9.9% | 51.6% | 30 | 5.5% |
| Kansas City, Mo. | 11.5% | $395,500 | -6.9% | 23.6% | 51 | 11.1% |
| Cleveland | 11.6% | $249,000 | 8.7% | 30.1% | 45 | 13.0% |
| San Antonio | 17.7% | $334,990 | -1.4% | 14.9% | 60 | 25.1% |
| Philadelphia | 18.0% | $359,000 | 2.6% | 36.2% | 39 | 11.7% |
| Birmingham, Ala. | 18.2% | $285,000 | -1.7% | 16.7% | 54 | 16.3% |
| Boston | 18.4% | $869,000 | -1.2% | 52.1% | 25 | 10.2% |
| St. Louis | 18.4% | $289,900 | -0.7% | 32.2% | 39 | 12.5% |
Additionally, the median time listings spent on the market reached 53 days, down from 66 days in February and up from 50 days the year prior. The share of listings with price reductions hit 17.5%, up monthly from 16.8% and annually from 15%. It's the largest share of price reductions for a March since 2016.
The median listing price hit $424,900 in March, rising 3.1% from February's $412,000 while remaining even with March 2024. It also marks a 41.6% five-year growth rate from March 2019's $300,000.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2025.
If you’re searching to purchase a home, it's helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
