As we transition into the spring season, the March 2025 housing market continues to show early signs of increased momentum, while still facing the lingering challenges of tight inventory and cautious buyer sentiment. Here’s what the data reveals about the current state of the market and what buyers and sellers can expect heading into April.
Inventory Remains Tight but Stable
The number of homes for sale rose modestly in March to 24 active listings, up from 19 in February. While still historically low, this upward tick may suggest that more homeowners are beginning to prep their properties for the spring market. New listings also increased to 28, compared to just 23 the month prior—an encouraging sign for buyers hungry for fresh inventory.
However, despite this small gain in inventory, the overall supply remains constrained. This is reflected in the months of inventory figures, which stood at 1.3 months for closed sales and 1.3 months for pended sales—both well below the balanced market threshold of 4 to 6 months. These tight conditions continue to favor sellers.
Buyer Activity Holding Strong
Buyer activity stayed relatively healthy in March. There were 19 closed sales, up from 13 in February, and 20 pending sales, up slightly from 18. While not a dramatic surge, the steady pace indicates that motivated buyers are still actively writing offers, especially when homes are priced and presented well.
The absorption rate based on closed sales rose to 85.2%, a strong figure that underscores a high percentage of listed homes are still being successfully sold. The absorption rate for pending sales was also solid at 74.1%, suggesting continued buyer engagement despite affordability concerns.
Home Prices Edge Upward
Home values experienced a healthy bump in March. The median sold price climbed to $715,000, a noticeable gain from $695,000 in February. This reflects not only increasing buyer competition but also seasonality, as spring often brings stronger pricing due to higher demand.
Additionally, homes sold for an average of 102% of their original list price, showing that many properties received offers at or above asking. This is up from 99% in February, signaling a growing sense of urgency among buyers—possibly to lock in rates before they rise further.
Homes Selling Faster Again
One of the clearest signs of increased market activity was the significant drop in average days on market. Homes in March sold in just 8 days on average, a dramatic decrease from 29 days in February. This sharp shift suggests that well-prepared and properly priced homes are moving quickly.
The Average Continuous Days on Market (CDOM) also fell from 45 in February to just 8 in March, highlighting how quickly homes are going under contract once listed.
What This Means for Sellers
If you’re thinking about listing your home this spring, the current market dynamics are in your favor. Inventory remains low, buyer demand is picking up, and pricing power is strong. Homes that are staged, priced right, and marketed effectively are selling quickly and often above asking.
It’s an ideal time to take advantage of the early spring momentum before more competition enters the market in late April and May.
What This Means for Buyers
Buyers should be prepared to move quickly and make competitive offers. With multiple-offer situations returning and homes going pending in under two weeks, it’s critical to be pre-approved and work with an agent who can help you navigate negotiations in a fast-moving environment.
While prices are rising, locking in a home now may offer more value compared to waiting until deeper into the spring season when competition and prices may rise further.
Bottom Line:
March 2025 showed the early signs of a classic spring surge—more listings, faster sales, and rising prices. Whether you’re buying or selling, understanding the timing and pace of the market can make a huge difference in your strategy. Let’s talk about how to position yourself for success this season.
