by March housing starts were 10.8% above March 2025, while existing home sales were down 1% from the same period
WASHINGTON — Two recent reports offer a window into the health of the housing industry, including existing home sales and new construction for the month of March.
The recently released new residential construction report released late last week has mixed results, the most positive being housing starts, which at 1,502,000 were 10.8% above the revised March 2025 estimate of 1,355,000. They also were 10.8% above the revised February estimate of 1,356,000. Single-family housing starts were estimated at 1,032,000 or 68.7% of the total and 9.7% above the revised February estimate of 941,000.
By comparison, the 1,372,000 building permits issued were 7.4% below the revised March 2025 estimate of 1,481,000 and 10.8% below the revised February estimate of 1,538,000. Single-family permits, estimated at 895,000 or 65.2% of the total, were 3.8% below the revised February estimate of 930,000.
There were an estimated 1,366,000 housing completions, 12.8% below 1,566,000 in March 2025 and .1% above the revised February estimate of 1,364,000. Single-family home completions were estimated at 896,000 or 65.6% of the total, or 4.8% below the revised February estimate of 941,000.
The Northeast had the largest increase in housing starts, up 18.9% from March 2025 and up 24.8% from February, while the Midwest declined .9% from March and rose 12.2% from February. The South increased 14.1% from March 2025 and rose 9.1% from February while the West rose 8% from March 2025 and 7.2% from February.
Meanwhile the Northeast declined 3.5% in building permits compared with March 2025 and declined 29% from February, while the Midwest rose 2.4% from March 2025 and declined 2.4% from February. The South declined 14% from March 2025 and 7.7% from February, while the West rose 2.2% from March 2025 and declined 14.2% from February.
The Northeast had a staggering 75.9% increase in housing completions compared with March 2025 and saw an also staggering 57.4% increase from February, while the Midwest saw 17.2% and 14.1% declines from March 2025 and February, respectively. The South had a 23.5% decline in housing completions compared with March 2025 and a 13.6% decline from February while the West had a 20.4% decline from March 2025 and a 16.1% increase from February.
The National Association of Realtors’ existing home sales report paints a different picture with a 1% decrease in existing home sales from March 2025 and a 3.6% decrease from February to a seasonally adjusted annual rate of 3.98 million in March.
The report noted that year-over-year sales rose in the South and West and fell in the Northeast and Midwest while month-over-month sales declined in all four regions.
“March home sales remained sluggish and below last year’s pace,” said NAR Chief Economist Lawrence Yun. “Lower consumer confidence and softer job growth continue to hold back buyers.”
Despite the declines, the median existing home sales price was $408,800, up 1.4% from $403,100 in March 2025. It also was the 33rd consecutive month of year-over-year price increases.
Single-family home sales totaled 3.63 million, or 91.2% of the total, down .3% from March 2025 and down 3.5% from February. The median price was $412,400, up 1.3% from March 2025.
Condominium and co-op sales totaled 350,000, down 7.9% from March 2025 and down 5.4% from February. The median price was $371,500, up 2.3% from March 2025.
The total housing inventory in March was 1.36 million units, up 2.3% from March 2025 and up 3% from February. This represents a 4.1- month supply of unsold inventory, up from four months in March 2025 and up 3.8 months from February.
“Inventory remains a major constraint on the market,” Yun said. “The inventory-to-sales ratio, or supply-to-demand ratio, is below historical norms. An additional 300,000 to 500,000 homes for sale would help bring the market closer to normal conditions and allow consumers to make purchase decisions without feeling rushed.”
“Because inventory remains limited, the median home price rose to a new record high for the month of March,” Yun added. “That price growth has helped the typical homeowner accumulate $128,100 in housing wealth over the past six years.”
The amount of inventory obviously means there is a big selection of housing. However, prices remain inflated, which means that consumers could be challenged when getting approved for a loan.
A higher housing payment also means there is less money in the budget for furniture, which means that retailers likely will have to offer aggressive promotions now and in the coming months.
Other highlights of the report were as follows:
+ The average 30-year fixed-rate mortgage in March was 6.18%, according to Freddie Mac, up from 6.05% in February and down from 6.65% one year ago.
+ Homes were on the market for 41 days in March, down from 47 days in February and up from 36 days in March 2025.
+ 32% of sales were first-time homebuyers, down from 34% in February and unchanged from one year ago.
+ 27% of transactions were cash sales, down from 31% a month ago and up slightly from 26% in March 2025.
+ 18% of transactions were individual investors or second-home buyers, up from 16% last month and 15% one year ago.
+ 2% of sales were distressed sales (foreclosures and short sales), down from 3% last month and March 2025.
