The housing market is thawing, but it doesn't feel like spring.
Existing home sales rose 3.4% in March to a seasonally adjusted annual rate of 4.02 million, according to the National Association of Realtors.
That's the strongest pace since December, yet it's still well below the roughly 5.3 million sales a year the country averaged in the decade before the pandemic.
Buyers are slowly coming back because mortgage rates have eased from their 2023 peak near 8%.
The average 30-year fixed rate has been hovering in the low-to-mid 6% range in recent weeks.
That drop won't change anyone's life, but it does shave real money off a monthly payment.
On a $350,000 loan, the difference between 7.5% and 6.5% is roughly $230 a month — about a week of groceries for a family of four.
More homes are finally listed, which means buyers in many markets no longer have to waive inspections or bid $40,000 over asking just to be taken seriously.
In parts of Texas, Florida, and the Mountain West, sellers are cutting prices again.
That's a real shift from the frenzy of 2021 and 2022, when a house could get a dozen offers in a weekend.
The median existing-home price was $403,700 in March, up about 2.7% from a year earlier.
Prices are sticky because most current owners are sitting on mortgages in the 3% to 4% range.
They have little reason to sell and trade a cheap loan for an expensive one.
That "lock-in effect" keeps supply tighter than it would otherwise be, and it's the single biggest reason the market feels stuck rather than broken.
Renters hoping for relief shouldn't count on it.
When home sales stall, would-be buyers stay in apartments longer, which keeps rental demand steady.
Apartment construction has added supply in some Sun Belt cities, but in the Northeast and Midwest, rents are still climbing.
If you're budgeting for a move this year, assume your rent will rise 3% to 5% unless you're in a market with a lot of new buildings.
For anyone thinking about buying in the next 12 months, the practical move is boring but effective.
Get pre-approved now so you know your real number, not the one you guess at.
Shop at least three lenders — credit unions and local banks often beat the big online names on fees.
And run the math on total monthly cost, including taxes, insurance, and HOA dues, not just the sticker price.
The days of listing on Thursday and reviewing offers on Sunday are mostly gone outside a few tight markets.
Price realistically, fix the obvious stuff, and be ready to negotiate on closing costs.
A buyer asking for a few thousand dollars toward fees is not an insult in this market — it's the new normal.
Final Thoughts
It's a slow, awkward middle where patience pays better than panic, and where the people who do their homework on rates and fees will come out ahead of the ones who don't.