Spring homebuying season is here, but it’s not bringing much price relief for buyers

Spring usually brings more homes onto the market — but it's not making them any more affordable so far this year.

The median existing-home price rose to $408,800 in March, up 1.4% from a year earlier and a record high for the month, per the National Association of Realtors.

At the same time, other costs haven't eased. Inflation rose 3.3% year over year in March, according to the Consumer Price Index, which measures the cost of everyday goods and services. It has remained above the Federal Reserve's 2% target since early 2021, putting sustained pressure on household budgets and making it harder to save for a home.

There hasn't been much relief for borrowing costs, either. The average 30-year fixed mortgage rate is 6.32%, according to Mortgage News Daily, and has remained above 6% for nearly four years, keeping monthly payments out of reach for many buyers.

With fewer people able to afford homes, existing-home sales fell 3.6% in March to a seasonally adjusted annual rate of 3.98 million, the lowest level since June 2025, according to NAR — a weak start to what is typically the busiest homebuying season of the year.

"March home sales remained sluggish and below last year's pace," NAR chief economist Lawrence Yun said in the report. "Lower consumer confidence and softer job growth continue to hold back buyers."

Taken together, the data suggests that the market is cooling — but not in a way that's bringing much relief for buyers.

There are signs the market has softened compared with a year ago, with fewer offers on average and a smaller share of homes selling above list price, per NAR data. The median time on the market also rose to 41 days in March from 36 days a year earlier.

But the shift toward buyers may be more subtle than it appears.

"I would not call this a true shift to a buyer's market just yet," says Michelle Griffith, a New York real estate agent with Douglas Elliman. "We are seeing more of a normalization of the market" compared with earlier in the decade when mortgage rates were lower, she says.

While home inventory has improved — rising 8.1% from a year earlier in March — it remains 13.8% below pre-pandemic levels, according to Realtor.com.

Overall, the U.S. housing market is still short by roughly 5.5 million homes, a gap that continues to put upward pressure on home prices, says Yun.

"Homes are sitting longer because buyers aren't biting, not because there's a flood of excellent options," says Stacie Staub, a realtor and founder of West + Main Homes in Denver.

While U.S. home prices are up overall, trends vary widely by region. In March, median home prices rose 5.7% in the Northeast from a year earlier, compared with just 0.8% growth in the South and a 1.3% decline in the West, according to NAR.

"Some metros, particularly in parts of the South and Sun Belt with strong new construction, are tilting more toward buyers, while others, especially in the Northeast, remain comparatively tight," says Matt Vernon, head of consumer lending at Bank of America.

That divide is also showing up in how buyers behave on the ground, says Gerard Splendore, a real estate broker at Coldwell Banker Warburg in New York City.

"Buyers with whom I am working have been 'considering' making offers for more than a month, despite seeing at least four or five appropriate listings each weekend," he says.

Want to lead with confidence and bring out the best in your team? Take CNBC's new online course, How To Be A Standout Leader. Expert instructors share practical strategies to help you build trust, communicate clearly and motivate other people to do their best work. Sign up today!