Redfin Reports U.S. Homes Are Selling at the Slowest Pace in 6 Years

Rhea-AI Summary

U.S. housing market shows significant slowdown with homes taking 47 days to sell in March 2025 - the longest period for any March since 2019. The median home-sale price reached $431,057, up 2.5% year-over-year, marking the slowest growth since September 2023.

Key indicators show a market cooling: only 27% of homes sold above list price, the lowest March share since 2020. Active listings hit a five-year high, rising 14.1% year-over-year, while new listings increased 6%. Pending home sales rose 1.7% month-over-month, but existing home sales fell to 4.15 million - the lowest in six months.

The slowdown is attributed to rising supply, sluggish demand, and overpricing. With mortgage rates at 6.65%, buyers face high costs amid economic uncertainty. Regional variations show strong price growth in Cleveland (11.8%) and Nassau County (9.8%), while Florida and Texas markets experienced declines due to rising insurance costs.

Positive

• Pending home sales increased 1.7% month-over-month, the biggest gain in six months
• New listings hit highest level since July 2022, rising 6% year-over-year
• Some markets like Cleveland and Nassau County showed strong price growth of 11.8% and 9.8% respectively

Negative

• Homes taking 47 days to sell, longest March period since 2019
• Only 27% of homes sold above list price, lowest March share since 2020
• Existing home sales fell to 4.15 million, lowest level in six months
• Active listings at five-year high, indicating oversupply
• Mortgage rates remain elevated at 6.65%, dampening buyer demand

Insights

Real Estate Market Analyst

Housing market slowdown signals challenges for Redfin's transaction-driven business model amid rising inventory and diminishing seller leverage.

The housing market data released by Redfin paints a concerning picture for the brokerage's near-term outlook. With homes taking 47 days to sell in March—the longest for any March since 2019—we're seeing a significant deceleration from pandemic-era velocity. This slowdown directly impacts Redfin's transaction volume, which is the lifeblood of their revenue model.

The 14.1% year-over-year increase in active listings represents a five-year high in inventory, fundamentally shifting market dynamics toward buyers. This explains why only 27% of homes sold above list price—the lowest March share since 2020. When examining the average sale-to-list price ratio of 98.8%, we see sellers accepting discounts rather than commanding premiums.

Most concerning is the regional disparity emerging in this slowdown. Markets in Florida and Texas are experiencing actual price declines, with Jacksonville falling 3.8% year-over-year. This uneven performance suggests structural issues beyond cyclical patterns—particularly the impact of soaring insurance costs in climate-vulnerable regions.

The disconnect between seller expectations and market reality is creating friction that extends transaction timelines. Many 2021-2022 buyers now selling are attempting to recoup investments through aggressive pricing, but with mortgage rates at 6.65%, buyer affordability remains constrained. For Redfin, longer sales cycles mean reduced agent productivity and potentially lower commission revenue per agent—a challenging equation for their technology-enhanced, but still transaction-dependent business model.

Homes are taking longer to sell because many are overpriced and demand is sluggish. Plus, sellers are competing with each other—the supply of homes for sale hit a five-year high in March.

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The typical U.S. home that went under contract in March was on the market for 47 days—the longest period for any March since 2019. That’s according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. By comparison, the typical home was selling in under half that time during the peak of the pandemic homebuying frenzy.

March marked five years since the coronavirus was declared a pandemic, and many U.S. housing metrics are returning to the levels seen just before or during the early days of the pandemic—when the housing market was moving slowly. Roughly one-quarter (27%) of homes sold for over their list price last month—the lowest March share since 2020.

Homes are taking longer to sell and attracting less homebuyer competition because supply is climbing, demand is sluggish and some properties are overpriced. Meanwhile, demand is sluggish because economic uncertainty and high homebuying costs are giving house hunters pause.

The good news for buyers is that because supply is climbing, price growth is slowing.

Home Prices Are Increasing at the Slowest Pace in a Year and a Half

The median home-sale price in March was $431,057, up 2.5% from a year earlier. That’s the slowest growth since September 2023.

When supply is on the rise, sellers lose negotiating power because buyers have more options to choose from. Still, many sellers are trying to fetch high prices. List prices have been growing faster than sale prices, and Redfin agents report that sellers are overpricing their homes, causing them to sit on the market.

“There’s a growing disconnect between what sellers think they can get for their homes and the direction the market is actually moving,” said Redfin Senior Economist Elijah de la Campa. “Tariff fears and widespread economic uncertainty are making homebuyers nervous, so if sellers don’t lower their price expectations, home sales may slow in the coming months.”

The typical home that sold in March sold for roughly 1% less than its list price.

The Supply of Homes for Sale Is at a Five-Year High

Active listings—the total number of homes for sale—hit the highest level in five years in March. They climbed 0.1% month over month on a seasonally adjusted basis and 14.1% year over year.

New listings hit the highest level since July 2022, rising 0.7% month over month on a seasonally adjusted basis and 6% year over year.

Alicia Grifaldo, a Redfin Premier real estate agent in Houston, said she has a lot more listing consults than buyers right now.

“Many people who bought homes in 2021 and 2022 are selling now, some of them because they can’t afford their property taxes and insurance payments. Because they bought at the peak of the market, they’re overpricing their homes to try to recoup their investment,” she said. “Sellers are competing with one another, and buyers are sparse, so pricing your listing reasonably is everything right now.”

It’s worth noting that new listings are up more than average in both Los Angeles (+23.5% Y/Y—the biggest increase in the country) and Washington, D.C. (+15.8%). In Los Angeles, listings could be rising because homeowners are putting their properties on the market to meet demand from families displaced by the January wildfires. And in D.C., the rise in listings could be related to the fact that so many federal workers are being laid off.

Home Sales Are Steady, But Below Pre-Pandemic Levels

Pending home sales rose 1.7% month over month in March—the biggest gain in six months on a seasonally adjusted basis—and were little changed from a year earlier (-0.01%).

Closed home sales fell roughly 1% from both a month and a year earlier. Existing home sales (closed sales of non-newly-built homes) fell 1.3% month over month and 0.4% year over year to a seasonally adjusted annual rate of 4.15 million—the lowest level in six months. Closed sales are a lagging indicator because they reflect purchases that, while finalized in March, went under contract (AKA pending) during the several months leading up to March.

All three sales metrics—pending sales, closed sales and existing-home sales—are below pre-pandemic levels. Elevated mortgage rates are one reason sales are sluggish. The average 30-year-fixed mortgage rate was 6.65% in March—the lowest level since October but still more than double the record low hit during the pandemic.

March 2025 Housing Market Highlights: United States
	March 2025	Month-over-month change	Year-over-year change
Median sale price	$431,057	1.5%	2.5%
Existing home sales, seasonally adjusted annual rate	4,152,091	-1.3%	-0.4%
Pending home sales, seasonally adjusted	486,263	1.7%	0%
Homes sold, seasonally adjusted	421,018	-0.9%	-1.3%
New listings, seasonally adjusted	563,684	0.7%	6%
Total homes for sale, seasonally adjusted (active listings)	1,870,505	0.1%	14.1%
Months of supply	3.1	-0.6	0.5
Median days on market	47	-9	6
Share of homes that went off market in two weeks	41%	5.8 ppts	-3.3 ppts
Share of homes that sold above final list price	27%	2.3 ppts	-2.9 ppts
Average sale-to-final-list-price ratio	98.8%	0.4 ppts	-0.4 ppts
Pending sales that fell out of contract, as % of overall pending sales	13.4%	0.1 ppts	0.2 ppts
Monthly average 30-year fixed mortgage rate	6.65%	-0.19 ppts	-0.17 ppts

Metro-Level Highlights: March 2025

• Prices: Median sale prices rose most from a year earlier in Cleveland (11.8%), Nassau County, NY (9.8%) and Newark, NJ (9.5%). They fell in eight metros, most of which are in Florida and Texas, where rising supply and soaring insurance costs have fueled a housing slowdown. The biggest declines were in Jacksonville (-3.8%), San Francisco (-2.6%) and Austin (-1.6%).
• Pending home sales: Pending sales rose most in Montgomery County, PA (13.7%), Denver (6.9%) and Sacramento, CA (5.7%). They fell most in Fort Lauderdale (-15.2%), Miami (-14.8%) and Newark (-9.6%).
• Closed home sales: Home sales rose most in San Francisco (13%), Oakland, CA (11.7%) and New York (5.3%). They fell most in San Antonio (-16.2%), Warren, MI (-11.5%) and Jacksonville (-10.1%).
• New listings: New listings rose most in Los Angeles (23.5%), Boston (23.4%) and Anaheim, CA (23.3%). They fell in four metros: San Antonio (-7.3%), Kansas City, MO (-5.3%), Milwaukee (-1.8%) and Jacksonville (-0.2%).
• Active listings: Active listings rose most in Oakland (38.4%), Denver (37.7%) and Las Vegas (32%). They fell in three metros, all of which are in the Midwest: Kansas City (-2.5%), Detroit (-1.5%) and Milwaukee (-0.9%).
• Sold above list price: In San Jose, 71.2% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came Newark (62.5%) and San Francisco (61.5%). The lowest shares were in Florida: West Palm Beach (7.2%), Fort Lauderdale (8.4%) and Miami (8.5%).
• Days on market: In Fort Lauderdale, the typical home that went under contract did so in 88 days, up 24 days from a year earlier—the biggest increase among the metros Redfin analyzed. Next came Miami (+19 days) and West Palm Beach (+19 days). San Francisco was the only metro that saw a decrease (-1 day Y/Y). Days on market was unchanged in Nassau County, New York and Boston.

To view the full report, including charts, full metro-level data and methodology, please visit: https://www.redfin.com/news/homes-sell-slowest-pace-since-2019

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250417050859/en/

Contact Redfin

Redfin Journalist Services:

Ally Forsell, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What is causing the slowdown in RDFN's reported home sales for March 2025?

The slowdown is due to rising supply, sluggish demand from high costs, economic uncertainty, and overpriced listings. Mortgage rates at 6.65% and increasing insurance costs in some regions are also contributing factors.

How long are homes taking to sell according to RDFN's March 2025 report?

Homes are taking 47 days to sell - the longest period for any March since 2019, compared to less than half that time during the peak of the pandemic.

What is the current median home sale price in March 2025 according to RDFN?

The median home-sale price is $431,057, showing a 2.5% increase from the previous year, the slowest growth since September 2023.

Which U.S. cities showed the strongest and weakest housing markets in RDFN's March report?

Cleveland (11.8%), Nassau County (9.8%), and Newark (9.5%) showed the strongest price growth, while Jacksonville (-3.8%), San Francisco (-2.6%), and Austin (-1.6%) experienced the largest declines.