T
he housing market's momentum has stalled, with existing home sales plummeting 5.9% from February to March and a year-over-year decline of 2.4%. This slowdown comes despite mortgage rates trending downward, suggesting that economic uncertainty is the primary concern for buyers.

    Key takeaways:

    * Existing home sales have been sluggish, with a seasonally adjusted annual rate of 4.02 million in March, down from February's rate.

    * The median existing home price reached an all-time high of $403,700 in March, but year-over-year growth slowed to 2.7%.

    * Mortgage rates remain volatile, with the 30-year fixed-rate averaging 6.81% this week, a slight decline from last week's average.

    As buyers become increasingly cautious, sellers may need to adjust their pricing strategy to entice hesitant buyers. "Pricing lower than your initial instinct can be a more effective way to sell quickly and avoid concessions," advises Chen Zhao, Redfin's economic research lead.

    The housing market's inventory has increased by nearly 20% compared to last year, with a four-month supply of homes available. However, this surge in inventory hasn't translated to more sales, as mortgage applications have dropped 12.7% week-over-week.

    Buyers and sellers must be strategic about their next steps, with Zhao recommending that buyers negotiate on price and terms and shop around for the best mortgage rates. As the market continues to shift, it's essential for both parties to adapt and navigate the changing landscape.