U.S. home prices rose just 0.1% in March, marking the third straight month of minimal gains.
Annual price growth slowed to about 1.7%–1.9%, the weakest on record dating back to 2012.
Prices declined in 13 major metro areas, with the biggest drops in Texas markets.
Are home prices going up or going down? It all depends.
In some markets where prices surged during the pandemic, prices are now falling. But in some other markets, where demand has remained steady, home prices are still rising.
So, when you hear that home prices rose 0.1% in March, that’s the national average of the top housing markets taken together.
In a new analysis, real estate brokerage Redfin reports that March prices were up roughly 1.7% from a year earlier — the slowest year-over-year growth since Redfin began tracking the data in 2012.
Demand pressures weigh on prices
The sluggish growth reflects softer demand, as many prospective buyers have stepped back from the market. Elevated mortgage rates — rising from about 6% to 6.4% in March — combined with economic uncertainty, have reduced affordability and dampened buyer activity.
Redfin economists say these pressures are “putting a lid” on price growth, contributing to what they describe as an early-stage reset in the housing market.
Supply constraints prevent price declines
Despite weaker demand, home prices have not fallen nationally, largely because inventory remains constrained. Some homeowners are opting not to sell into a softer market, limiting the number of new listings and helping support prices.
There are still more sellers than buyers overall, but the gap has narrowed as both sides hesitate amid uncertain conditions.
Regional disparities widen
While the national trend shows slight growth, local markets are diverging. Prices fell month over month in 13 of the largest U.S. metro areas, with the steepest declines in Fort Worth and Austin, Texas.
At the same time, some markets posted notable gains, including Pittsburgh, West Palm Beach, and San Francisco, highlighting uneven conditions across the country.
Market reset underway
The latest data suggests the housing market is transitioning away from the rapid price growth seen during the pandemic era toward a more balanced environment.
Slower price increases could eventually improve affordability and draw some buyers back, but for now, high borrowing costs and economic uncertainty continue to restrain activity, keeping home price growth near historic lows.