Inventory Growth and Stabilizing Trends Shape the Housing Market

January 2025 continued the trend of shifting market dynamics, with inventory levels nearing pre-pandemic levels and contract volumes holding steady. While new listings remain at seasonal lows, the market is showing signs of stabilization, with prices maintaining year-over-year growth and inventory expansion offering some relief to supply constraints.

In January 2025, 187,402 net new listings were placed on the market, reflecting an 8.9% decrease compared to January 2024. However, contract volumes edged up by 0.3%, reinforcing steady buyer activity despite affordability challenges and evolving economic conditions. The biggest gains in contract volume were seen in higher-priced segments, mirroring trends from the previous months.

"January’s numbers point to a market in transition," said Jeremy Sicklick, Co-Founder and CEO of HouseCanary. "Inventory growth is helping to balance supply and demand, but shifts in price tiers and affordability pressures remain key factors in determining market movement as we progress through 2025."

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Key Highlights from January 2025

1. Inventory Growth Signals Market Stabilization
   Total inventory has increased by 23.7% compared to January 2024, again marking the highest levels since COVID. While still below historical norms, this growth provides much-needed supply to meet steady demand.
2. Buyer Activity Holds Steady
   Contract volume increased by 0.3% year-over-year, with notable gains in the $600k-$1m and $1m+ price tiers. While lower price segments saw declines, mid-to-upper-tier homes continued to attract buyers.
3. Prices Maintain Growth Trends
   The median listed price for single-family homes in January 2025 was $439,462, up 2.5% year-over-year. The median closed price saw an even stronger increase of 6.1% to $414,032. While month-over-month fluctuations occur, annual trends reinforce steady price appreciation.
4. Rental Market Sees Increased Supply
   Rental inventory surged by 28.6% compared to last year, with median listed rents decreasing slightly by 0.8%. This increase in rental supply is gradually helping stabilize price pressures in the rental market.

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Breaking It Down by Price Tier

• $0-$200k: Net new listings remain weak, contract volume up 1.8%.
• $200k-$400k: Declines in net new listings, contract volume down 0.6%.
• $400k-$600k: Flat growth in net new listings, contracts down 0.7%.
• $600k-$1m: Increasing momentum in net new listings, contracts up 1.2%.
• $1m+: Leading segment in net new listings, contracts up 4.6%.

What This Means for 2025The January 2025 Market Pulse Report highlights a market gradually returning to balance. While inventory expansion and price stability provide optimism, the sharp decline in lower-tier new listings suggests ongoing affordability and supply challenges.As the market shifts, leveraging timely and accurate data is crucial. HouseCanary’s insights empower real estate professionals and investors to make informed decisions and navigate evolving trends confidently.More details in the full report.

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More in the full report.

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‍Methodology

The Market Pulse Report is an ongoing review of proprietary data and housing market trends from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing real estate data between January 2024 and January 2025.