According to Zillow’s March 2026 market report, the U.S. housing market remained more active than many expected, even as mortgage rates moved higher again. Pending home sales increased sharply, home values continued to rise modestly, and housing inventory kept growing.
In March alone, 281,546 homes newly went under contract, making it the second-highest monthly total since August 2022. That figure was up 4.6% compared with the same time last year and up 29.8% from February. Zillow interpreted this as a clear sign that the spring housing market has started in earnest.
However, the stronger market activity was not driven by lower rates alone. Zillow noted that several factors helped boost the market in March, including pent-up demand after three years of relatively weak sales activity, delayed moves following winter storms in January and February, and the benefit of somewhat lower mortgage rates earlier in the year. Still, by late March, mortgage rates had climbed from 5.98% at the end of February to 6.38%, pushing the typical monthly mortgage payment up 1.5% from the prior month.
Even with higher borrowing costs, buyer demand remained solid. Zillow reported that the average daily page views per listing were 32% higher than they were in March of last year. This suggests that demand is still holding up even as the number of available homes continues to increase.
Looking at the broader numbers, the typical U.S. home value reached $365,545 in March. That was up 0.6% from the previous month and 0.8% from a year earlier. Active inventory rose to 1.23 million homes nationwide, up 4.2% year over year and 9.5% month over month. New listings totaled 384,854, which was nearly unchanged from last year but up 35.6% from February.
Sales activity also showed improvement. Zillow’s preliminary estimate put March home sales at 300,398, an increase of 3.7% from a year ago and 25.2% from the previous month. The median time it took for a home to move into pending status was 19 days. That was two days longer than a year ago, but nine days faster than in February.
At the same time, price cuts were still part of the market picture. In March, 22.6% of listings had a price reduction. That was 0.8 percentage points lower than a year ago, but 2.4 percentage points higher than the month before. In other words, the market is active, but not every listing is selling quickly or at full strength. Homes that are overpriced are still facing resistance.
The rental market also posted modest gains. The typical U.S. rent rose to $1,910, up 1.8% from a year earlier and 0.6% from the prior month. Meanwhile, 39.8% of Zillow rental listings included some form of concession, a level that was about the same as last year.
Overall, Zillow’s March 2026 report suggests that the housing market has not weakened as much as some had expected. Even with higher mortgage rates, contract activity and buyer demand remained resilient. At the same time, growing inventory is giving buyers more choices than they had a year ago.
For buyers, this means there are more homes to consider, but well-priced properties can still move quickly, so being prepared remains important. For sellers, the market is not weak, but pricing strategy matters more than ever. A home that enters the market at the wrong price may still end up competing through price reductions. The combination of rising inventory, steady demand, and a meaningful share of price cuts shows that today’s market is active, but also more selective.
About Richard Choi
Richard Choi is a Korean-speaking Realtor in New Jersey serving Palisades Park, Fort Lee, Englewood Cliffs, Leonia, Cliffside Park, and surrounding Bergen County communities. He helps buyers, sellers, investors, landlords, and tenants with residential, commercial, and business real estate.
Clients searching for a New Jersey Realtor, Bergen County Realtor, Palisades Park Realtor, Fort Lee Realtor, or Korean Realtor in New Jersey can count on Richard Choi for clear communication, local market knowledge, and practical guidance in both Korean and English.
Whether you are buying your first home, selling a property, relocating, investing, or trying to better understand the New Jersey real estate process, Richard Choi provides step-by-step support with professionalism and personal attention.
Richard Choi
New Jersey Realtor
Bergen County Korean Realtor
Palisades Park | Fort Lee | Englewood Cliffs | Leonia | Cliffside Park