Houses Moving Off the Market at Fastest Pace Since Recession
If you’ve been considering selling your home, now may be a pretty good time to do so. According to new data from Trulia and reported by MarketWatch, list-to-sales times have fallen to their lowest level since the recession first hit. Moreover the average number of days that homes sit on the market is now half of what it was back in 2010.
The latest study found the median list-to-sale time — which measures the number of days between when a property hits the market and when it’s placed under contract — was just 64 days as of April. By comparison the median was nearly two weeks longer one year ago, sitting at 77 days. At the same time, more affordable homes are selling even faster, with starter homes moving at a median pace of 59 days and so-called “trade-up” homes (A.K.A. mid-tier houses) being snatched up in 57 days. On the other hand, premium homes tend to last a bit longer, with a median list-to-sale time of 72 days.
While the vast majority of markets have experienced falling sale times, there are a few exceptions. Trulia found that only Syracuse, New York; New Orleans, Lousiana; and Honolulu, Hawaii had longer median list-to-sale periods than they did last year. As for cities that are outpacing the average, west coast hotbeds Seattle, Washington; San Francisco, California; and San Jose, California came out on top. In each of those cities, the median time on the market was just 36 days. Also notable is the city of New Haven, Connecticut, which saw its median list-to-sale window shrink by a whopping 47 days in the past year. Other warming markets include Hartford, Connecticut (down 40 days); Knoxville, Tennesee (down 28 days); and Indianapolis, Indiana (down 23 days).
Speaking on what these findings mean for the overall housing market, Trulia Housing Economics Researcher Felipe Chacón points out that the answer really depends on whether you’re the buyer or the seller. As he explains, “Sellers generally appreciate getting their home sold as quickly as possible, while buyers can benefit from having some breathing room to make decisions and negotiate.” He went on to say, “Nationally, this makes the trend of home moving faster off the market over the past 8 years tougher and tougher for those looking to buy a home.”
These figures once again demonstrate how hot the current housing market is — a fact we discussed back in February when a report from Redfin found home prices soaring in many parts of the country. While this may be great news for sellers and the overall economy, it could also mean that would-be buyers in certain markets are quickly being outpriced — which would explain why starter homes are moving at a snappier pace. As a result it will be interesting to see how long this trend continues for and how long it will be until the market will start to cool once again.