The U.S. housing market is continuing to cool as higher mortgage rates and economic uncertainty push many buyers to the sidelines. As a result, inventory is rising, and homes are taking longer to sell—shifting the dynamic between buyers and sellers.
In March 2025, homes took an average of 47 days to sell, marking the slowest March since before the pandemic boom. This trend signals a more cautious and patient buyer pool, with many prospective homeowners waiting for better affordability or more economic clarity.
Despite this shift, many sellers are holding onto optimistic expectations. According to recent data, 81% of sellers still believe they’ll get their asking price or more. However, with fewer bidding wars and increased days on market, this optimism may need to be tempered.
Mortgage rates are playing a major role in the slowdown. The average 30-year fixed mortgage rate recently hit 6.83%, causing some buyers to explore alternative financing options like adjustable-rate mortgages (ARMs) to keep monthly payments manageable.
The new construction market is also feeling the impact. Single-family housing starts dropped 14.2% in March, influenced by higher material costs and ongoing tariffs. Builders are becoming more cautious, further limiting supply in some markets.
While inventory is slowly increasing, demand remains fragile. The path forward will likely depend on what happens next with interest rates and broader economic confidence. Until then, both buyers and sellers may need to recalibrate their expectations.