U.S. Existing Home Sales Fall 3.6%, Affordability Pressures Persist — Evening Brief – 04.13.26

U.S. existing home sales declined 3.6% month-over-month in March to a seasonally adjusted annual rate of 3.98 million, missing expectations of 4.08 million and down from a revised 4.13 million in February, according to the National Association of Realtors. Sales were also down 1% compared to a year ago, highlighting continued softness in housing demand. 

“March home sales remained sluggish and below last year’s pace,” said Chief Economist Lawrence Yun. “Lower consumer confidence and softer job growth continue to hold back buyers.” 

On a regional basis, sales declined across all four regions month-over-month, while year-over-year performance was mixed, with gains in the South and West offset by declines in the Northeast and Midwest. 

Inventory showed modest improvement but remains a key constraint. Total housing supply rose 3.0% month-over-month and 2.3% year-over-year to 1.36 million units. “Inventory remains a major constraint on the market,” Yun noted. “The inventory-to-sales ratio, or supply-to-demand ratio, is below historical norms.” 

Limited supply continues to support pricing. The median existing-home price increased 1.4% year-over-year to $408,800, marking the 33rd consecutive month of annual gains and a record high for March. At the same time, affordability pressures are building, with the Housing Affordability Index declining to 113.7 from 117.5 in February. 

“Mortgage rates have been rising, and that has led us to trim our home sales outlook for the year,” Yun added. 

The association now expects existing home sales to rise 4% in 2026, while new home sales are projected to remain flat. Home prices are still forecast to increase 4% this year.