The national median existing home price has reached $420,000 in March, up 6% year-over-year, as the spring buying season kicks off with stronger-than-expected demand fueled by lower mortgage rates.

Market Dynamics

Inventory remains 25% below pre-pandemic levels despite improvements. The combination of limited supply and renewed demand is pushing prices higher in most metros, with Sun Belt cities leading appreciation.

Affordability

Despite higher prices, monthly payments are actually lower than a year ago due to the rate decline. The typical monthly payment on a median-priced home is $2,250, down from $2,480 last spring.