Inventory Continues to Rise as Buyer Demand Shows Strength
by HouseCanary Staff
The U.S. housing market is continuing its shift toward a more balanced environment, with rising inventory and steady contract activity. While new listings remain constrained, overall inventory levels have expanded, providing buyers with more choices and softening competitive pressures.
Inventory Growth Approaches Buyer-Friendly Territory
Mirroring trends from the previous month, the supply of available homes continued its upward climb in April 2025. Total inventory is up a significant 21.4% compared to April 2024 and a substantial 41.6% from 2023, reaching its highest point since 2021. This growth has pushed the months of inventory to 5.22, a figure that now borders on the threshold of a buyer’s market, offering more options and potentially greater negotiating power for those looking to purchase.
Interestingly, while net new listings for April 2025 saw a modest year-over-year increase of 2.9%, this was driven by a 7.0% surge in new listings being offset by a considerable 30.2% rise in removals compared to the same period last year. This suggests a dynamic where more properties are coming onto the market, but a larger proportion are also being taken off, perhaps due to unsuccessful initial listing periods or other factors.
Despite the near multi-year seasonal lows in overall listing activity, contract volume demonstrated encouraging strength. In April 2025, 309,367 properties went under contract, marking a healthy 6.3% increase compared to April 2024. This indicates that while the flow of new listings might be subdued by seasonal norms, buyer engagement remains active.
Rental Market Sees Significant Inventory Expansion
The single-family rental market continued to experience a substantial increase in available properties. Rental inventory was up 20.9% year-over-year and a striking 38.9% compared to 2023. Consequently, the median listed monthly rent saw a slight year-over-year decrease of 1.3% to $2,567, indicating that the growing inventory may be starting to moderate rental price growth.
What This Means for 2025
April’s housing market data underscores a market in a state of delicate balance. While the increase in available inventory continues to shift the landscape towards more buyer-friendly conditions, the solid year-over-year growth in contract volume indicates that demand remains a significant factor. The continued, albeit moderating, price growth, coupled with a rise in price reductions, highlights the ongoing interplay between affordability and seller expectations.
As the housing market navigates the complexities of the spring season, access to timely and accurate data is paramount. HouseCanary remains committed to providing the insights and analysis that industry professionals need to understand these evolving trends and make informed decisions in the dynamic 2025 real estate environment.
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