Home sales were already headed down in March, before the full impact of the COVID-19 pandemic.
Nationwide existing home sales fell 8.5% last month, according to just-released numbers from the National Association of Realtors.
March's decline in sales was the largest in more than four years and followed big gains in February and January before the coronavirus swept the country.
"Unfortunately, we knew home sales would wane in March due to the coronavirus outbreak," NAR chief economist Lawrence Yun said in a statement. "More temporary interruptions to home sales should be expected in the next couple of months, though home prices will still likely rise."
Real estate agents have reported a huge decline in homebuyer traffic and softening sales due to the pandemic and resulting record job losses.
Nationwide housing inventory at the end of was down 10.2% from a year ago with some sellers deciding to head for the sidelines.
"Earlier in the year, we watched inventory gradually tick upward but with the current quarantine recommendations in place, fewer sellers are listing homes, which will limit buyer choices," Yun said. "Significantly more listings are needed and more will come on to the market once the economy steadily reopens."
Nationwide the median existing-home price in March was 8% higher than a year earlier, according to the Realtors association.
The new data are "the first definitive signal on just how much the nation's widespread business shutdowns, social distancing measures and general fear and uncertainty are weighing on home sales during the initial phase of the U.S. coronavirus outbreak," Zillow's economist Matthew Speakman said. "On the surface, the numbers are bad, recording the largest monthly decline since November 2015.
"But as disappointing as they are now, expect them to get worse _ April data will tell a much more complete story," he said. "While continued declines in sales are almost certain, it is less certain what happens to home prices, which grew in March at their fastest annual pace since 2016."
More than a third of the March home sales around the country were to first-time buyers.
Before the pandemic, home purchases were booming in most areas of the country because of near record low mortgage rates.
"Despite the social distancing restrictions, with many Realtors conducting virtual open home tours and with mortgage rates on the decline, a number of first-time buyers were still able to purchase housing last month," Yun said.
