The sale of previously owned homes across the United States fell sharply by 5.9 percent in March from the previous month, according to data released on Friday by the National Association of Realtors.
Simultaneously, the industry body reported that the housing sales pace had fallen to its lowest level since the 2009 subprime mortgage crisis, raising concerns for the broader U.S. economy.
Newsweek reached out to the Department of the Treasury for comment on Friday via email outside of regular office hours.
Why It Matters
President Donald Trump announced dramatic new tariffs on foreign imports on April 2, which he dubbed “Liberation Day.” Many of these were later postponed for 90 days, but tariffs of 145 percent on most imports from China, along with a 25 percent tariff on imported automobiles, remain in effect.
On Tuesday, the International Monetary Fund slashed its 2025 U.S. growth forecast from 2.7 percent to 1.8 percent, citing tariffs as one of the reasons. Concerningly, for U.S. policymakers, the housing data published on Friday cover the period before most of the new tariffs were announced, meaning that most of their impact has yet to be reflected in the figures.
What To Know
The National Association of Realtors’ data, published on Friday, showed a 5.9 percent decline in existing home sales between February and March 2025, with the total figure dropping to an annualized, adjusted rate of 4.02 million.
This annualized rate was the lowest since 2009, during the Great Recession, when the U.S. property market was engulfed in a subprime mortgage crisis.
Notably, the fall occurred across all four U.S. Census Bureau regions, with the most dramatic decline of 9.4 percent occurring in the West.
A for sale sign is displayed outside of a home for sale on August 16, 2024, in Los Angeles.
PATRICK T. FALLON/AFP/GETTY
This was followed by a 5.7 percent cut in the South, a 5 percent cut in the Midwest, and a 2 percent cut in the Northeast.
Simultaneously, the median price for existing homes sold in March rose by 2.7 percent from the same month in 2024 to $403,700, with increases recorded in all four Census Bureau regions.
However, according to data published by real estate brokerage Redfin, house prices only increased by 0.2 percent between February and March 2025, the slowest pace of growth since December 2022.
Redfin figures also showed that 52,000 house sales were canceled in March, a total of 13.4 percent, which is the third-highest March figure since 2017.
What People Are Saying
National Association of Realtors chief economist Lawrence Yun said: “Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates. Residential housing mobility, currently at historic lows, signals the troublesome possibility of less economic mobility for society.”
Realtor.com chief economist Danielle Hale commented: “The past few years have hinged on whether there would be enough sellers, but as the proverbial housing shelves are better stocked, 2025 is more likely to be about where there are buyers.”
What Happens Next
Any impact from Trump’s tariff program is likely to feed into the housing market in the coming months. Trump argues that the tariffs are needed to revitalize American industry and prevent the U.S. from being exploited, but critics warn that they will reduce economic growth.