Homes in the United States sold faster than ever than in 2017 with buyers snapping up properties as soon as they are put on sale, new research suggests.
It took just 81 days on average to sell a home from marketing to closure with properties selling fastest in June when it took just 73 days, according to the latest report from real estate firm Zillow.
Since it can take between four and six weeks to close a home sale, that means that the typical home was on the market for around 30 days before going under contract and it means that buyers are facing a limited market.
Supply across the country has fallen on a year on year basis for 37 consecutive months and nearly a quarter of all homes sold for more than the listed price, signalling that tight competition may be leading to bidding wars and driving prices higher.
‘As demand has outpaced supply in the housing market over the past three years, buying a home has become an exercise in speed and agility, said Zillow senior economist Aaron Terrazas.
‘This is shaping up to be another competitive home shopping season for buyers, who may have to linger on the market until they find the right home but then sprint across the finish line once they do. Being prepared and getting financing preapproved can help a buyer make a stand out offer,’ he added.
The research also found that the typical buyer spends just over four months searching for a home and makes two offers before successfully buying a home. Since homes in several markets sold in less time than that, buyers should be ready to move quickly when they find a home they want to purchase.
Homes sold faster in 2017 than they did the year before in nearly all of the 35 biggest housing markets. In Houston, homes sold slightly faster in 2016 at 80 days than in 2017 at 81 days while homes in Miami sold in 110 days in both years.
The fastest-selling market in 2017 was San Jose in California where the typical home sold in 41 days. San Jose also experienced the biggest drop in inventory over the past year, with 26.8 percent fewer homes to choose from than a year earlier. Homes in San Jose sold fastest last year in October, with a span of just 39 days from listing to closing.
