T
he US housing market is experiencing a slowdown, with homes taking longer to sell and prices growing at a slower pace. According to Redfin data, the median time for a home to go under contract in March was 47 days, the longest since 2019. This is partly due to rising supply, tepid buyer demand, and some sellers listing their properties at unrealistic prices.

    The median US home-sale price increased by 2.5% from last year to $431,057, but this represents the slowest annual growth since September 2023. As inventory expands, buyers have more options, giving them an advantage in negotiations. However, many sellers are still pricing their homes aggressively, leading to a disconnect between asking and sale prices.

    Redfin Senior Economist Elijah de la Campa notes that economic uncertainty and high borrowing costs are contributing to buyer hesitation. With the typical home selling for about 1% below its asking price, sellers who fail to adjust their expectations may see their homes linger unsold in the coming months.

    The number of active listings reached a five-year high in March, with new listings increasing by 6% from last year. This surge is partly driven by homeowners listing properties due to rising property taxes and insurance costs. Alicia Grifaldo, a Redfin Premier agent in Houston, emphasizes the importance of competitive and realistic pricing in today's market.

    While pending home sales rose 1.7% from February, they were essentially flat compared to last year. Closed home sales declined by about 1% both month over month and year over year. Elevated mortgage rates continue to be a major drag on market activity, with the average 30-year fixed mortgage rate at 6.65%, still more than twice the record lows seen during the pandemic.