- Home values showed minimal growth in March 2025, rising just 0.2%.
- Inventory increased by 19% year-over-year, with 1.15 million homes available.
- 23.5% of Zillow (Z) listings received price cuts, marking a record high since 2018.
In March 2025, home values across the United States experienced minimal growth, increasing by just 0.2% according to Zillow's (Z) market report. This period, typically characterized by robust growth, saw a significant rise in inventory with 19% more homes available than the previous year, totaling 1.15 million homes. Despite mortgage rates reaching a 2025 low of 6.65%, buyer activity remained subdued, contributing to the minimal increase in home values.
The market witnessed 375,000 new homes entering its listings, representing a 9% increase year-over-year. However, only 265,000 listings transitioned into pending sales, reflecting a mismatch in seller and buyer dynamics. This imbalance led to a notable shift in inventory levels, which remain 24% below pre-pandemic levels.
Affordability continues to be a pressing issue, with average mortgage payments demanding 35.3% of the median household income, surpassing the 30% financial burden threshold. Sellers have responded by implementing price cuts on 23.5% of listings in March, the highest share since at least 2018, in an attempt to attract buyers. As a result, the typical home value in the U.S. now stands at $359,741, with a modest 1.2% year-over-year appreciation.
In several major metros, including the four major markets in Florida and San Antonio, home values fell month-over-month. This suggests that despite the increased inventory, many areas continue to grapple with the economic uncertainties and affordability challenges facing potential homebuyers.
