Housing market approaching equilibrium: HouseCanary

According to real estate analytics firm HouseCanary, the country’s housing market is in a “more sustainable equilibrium.”

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More homes throughout the country went under contract in April compared to the same period last year, while the average closing price rose more than 5% in the same time frame, the company reported this month. Inventory growth, while cooling, is returning to average historical levels.

“As the U.S. housing market moves toward summer,” the report said, “supply improvements, steady buyer activity and balanced price trends continue to contribute to a more sustainable market environment.”

The findings did not address the impact or reversal of interest rates which have fluctuated in recent months. The current average 30-year mortgage rate has fallen significantly from last spring, although macroeconomic factors have halted an earlier decline below 6%.

Consumers contracted 334,021 single-family homes in April, an annual increase of 2.9%, HouseCanary reports. While the number of new listings fell 7% from last year, “removals” of properties from the market rose 28.7%. The company, which has a brokerage office in every state, said the 2,853,966 net new listings in the past 52 weeks were down 3.9% from the previous period.

Within the numbers

Home inventory grew 2.4% year-over-year in April and continues to rise 22% compared to April 2024. The 5.10-month supply represents a “neutral” market teetering toward buyer-friendly territory, according to HouseCanary.

The average number of days that homes are on the market in the US is 41 days, almost as long as last April.

Homeowners list more conservative prices, at an average price of $457,891, down 2% per year. However, they win a little more money at the closing table, with the average closing price increasing to $441,247 since last spring. On a monthly basis, both figures increased slightly.

The trends are similar in the condominium marketwhere inventory rose 1.5% over the past year, but another 25% since April 2024. The 68,952 apartments under contract in April were down 1.3% from the previous spring.

The net number of new apartments fell significantly, as the number of new homes fell by 9.5% over the past twelve months, alongside a 20% increase in house moves. Their prices are also stagnant, as the average closing price for apartments was virtually flat year-over-year at $395,023.

Both single-family home and condo sellers are also cutting prices at lower rates, down 6.1% and 12.7%, respectively, compared to last year’s thawing market.

Consumers who choose to rent are now seeing green shoots. Although inventory has shrunk by double digits over the past 12 months, the average stock market rent fell from last April to $2,447 last month as landlords priced competitively, according to HouseCanary.