T
he US housing market is experiencing a slowdown, with sales of previously-owned homes plummeting to a 13-year low in March. The National Association of Realtors reported that existing-home sales dropped 5.9% from the previous month, reaching a seasonally-adjusted annual rate of 4.02 million units - the lowest since 2009. This decline is largely attributed to high mortgage rates and economic concerns.

    Despite the sluggish sales, the median price of previously-owned homes reached an all-time high for March at $403,700, with the annual price increase being the smallest in several months. However, this uptick in prices is not a cause for celebration, as it's a sign that homebuyers are struggling to afford their dream homes.

    The West region, known for its pricey market, saw sales sink 9.4% in March, but still managed to post a year-over-year gain due to strong job growth in the Rocky Mountain states. The median price in this region was $621,200, up 2.6%.

    Meanwhile, home sales in other regions fared poorly: the Northeast saw a 2% decline, the Midwest dropped 5%, and the South experienced a 5.7% decline. Lawrence Yun, chief economist for NAR, attributed these sluggish sales to affordability challenges associated with high mortgage rates.

    The abundance of available listings is another story altogether - at the end of March, there were 1.33 million units for sale, up 8.1% from February and 19.8% from a year ago. This surge in inventory is starting to put pressure on home prices, which may finally be showing signs of slowing down.

    As Yun noted, "In a stark contrast to the stock and bond markets, household wealth in residential real estate continues to reach new heights." With real estate asset valuation at $52 trillion, each percentage point gain in home prices adds more than $500 billion to the household balance sheet.