Housing Inventory Hits Post-Pandemic High—but Buyers Still Holding Back

Sellers may be stepping up, but buyers are still playing it cool. According to Zillow’s latest housing market report, March brought the highest number of homes for sale since 2020, but affordability challenges kept many potential buyers on the sidelines.

At ReadySetLoan, we’re tracking this shift closely to help buyers make sense of what’s really happening—and why more inventory doesn’t necessarily mean a buyer boom just yet.

📈 Inventory Climbs, But Enthusiasm Doesn’t

Over 375,000 new listings hit the market in March—a nearly 9% increase over the same time last year. It's a notable uptick that brings inventory to 1.15 million homes, a level we haven’t seen since March 2020. Compared to March 2023 and 2024, that’s a dramatic improvement, when inventory was down 43% and 36%, respectively.

But before you shout “buyer’s market,” here’s the catch: buyers didn’t bite.

Despite slightly lower average mortgage rates—6.65% in March 2025 compared to 6.82% in 2024—pending home sales were flat. Only about 265,000 homes went under contract, which means over 110,000 more homes came onto the market than went pending.

🏡 What’s Causing the Buyer Slowdown?

One word: affordability.

Even with more homes to choose from, the typical U.S. home value in March was $359,741. Assuming a 20% down payment, that translates to a monthly mortgage payment of around $1,855—eating up more than 35% of the median household income nationwide.

“Buyers aren’t just looking at interest rates—they’re doing the math on monthly payments, insurance, taxes, and inflation,” says Neil Caron, Area Manager at CMG Mortgage. “We’re seeing more hesitancy from first-time buyers who are waiting for the market to feel more balanced.”

At ReadySetLoan, we break these numbers down every day to help buyers navigate the market—not fear it.

🐷 RSL Piggy Points – What You Need to Know:

• Inventory is rising: Up 19% year-over-year, and trending closer to normal seasonal patterns.

• Price growth is cooling: Home values rose only 0.2% month-over-month in March—the slowest for this time of year since at least 2018.

• Price cuts are rising: About 23% of listings on Zillow had a price reduction in March—the highest for any March since 2018.

• Metro markets are cooling: Cities like Miami, Tampa, Austin, and Phoenix all posted month-over-month or year-over-year home price drops.

  
  

🏁 RSL Perspective

This rise in inventory is good news—but it’s not quite the green light buyers might be hoping for. Still, this kind of market offers unique opportunities for educated buyers who are ready to act strategically. That’s where ReadySetLoan comes in.

We're your go-to resource guide and educational partner, not a lender. We help you make informed decisions, ask the right questions, and navigate homebuying with clarity—not confusion.

Visit ReadySetLoan to get real-time advice, tips, and tools to help you decide if now is your time to run your own race to homeownership.

www.ReadySetLoan.com