March 2025 MBS Highway Housing Index

The MBS Highway National Housing Index rose four points in March 2025, led by a seven-point improvement in buyer activity. Price direction, however, was flat overall, with month-over-month declines seen in several regions.

National Data

The MBS Highway National Housing Index in March 2025 rose 4 points month-over-month to 45. This compares with a 2 point gain at the same time last year (54 → 56). As a reminder, an index level of 50 represents the breakeven point between contraction (<50) and expansion (>50).

The Buyer Activity sub-index rose for the fourth-straight month, climbing 7 points to 45. A year ago, this figure was 50. Last year, we saw a 30-point increase between November and March. This year, we’ve seen a more modest 21-point increase.

The national Price Direction sub-index was flat at 44, ending three months of steady improvement. In March 2025, five of the seven regions saw their Price Direction sub-indexes decline relative to February 2025. In March 2024, the Price Direction sub-index was significantly higher, at 62.

Regional Data

In March 2025, Buyer Activity levels rose in all seven regions, with significant jumps seen in the Northeast (+16 to 62), Midwest (+16 to 54), and Northwest (+13 to 51) regions. The Northeast and Midwest were the most active regions; the Southeast (38) and Southwest (40), the least active.

As mentioned above, five of the seven regions saw month-over-month declines in their Price Direction sub-indexes. Only four are in expansion territory: Northeast (64), Mid-Atlantic (60), Midwest (54) and the West (52). Last year at this time, all seven regions had Price Direction sub-indexes >50.

Question of the Month: Buyer’s or Seller’s Market?

For most of the last five years, sellers have had the upper hand in negotiations as demand skyrocketed and inventory levels plunged. That is beginning to change in some regions, however, with buyers gaining leverage. We asked our survey respondents to answer the following question:

How would you characterize your local supply and demand situation?

* Buyer’s Market
* Seller’s Market
* Balanced

Buyer’s Markets: The Southeast (particularly Florida, Georgia and Tennessee) and Southwest (Texas, Arizona, Colorado and Utah) had the most respondents say that buyers now had negotiating power. Buyers also seem to be gaining leverage in certain markets in the Northwest (Washington and Montana) and West (parts of California).

Seller’s Markets: 80% of the respondents in the Northeast and 73% in the Mid-Atlantic (particularly New Jersey and Pennsylvania) said that sellers continued to have the upper hand. In many of these markets, inventory levels remain 40–60% below pre-pandemic levels. Respondents from several states in the Midwest (particularly Illinois and Minnesota) noted similar inventory issues and a high prevalence of multiple offers per listing.

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