It took the average buyer 48 days to apply for and close on their mortgage loan in July.
Calculating Average Days on Market
Most real estate agents know the average number of days on market in their neighborhood by heart, so all you have to do is ask. You can also calculate the number yourself by figuring out the day each home goes on the market in a given month, and then counting the days pending. Add the number of all those houses together, and divide the total by the number of homes.
What Makes a House Sell Quickly?
Sometimes there’s no logical reason for how long it takes to sell a house. It could happen quickly out of sheer luck (maybe a buyer is simply in the right place at the right time), or it may be the result of one or more factors below.
How Much Competition Is There?
Homes tend to sell sooner in sellers’ markets—when inventory is low and buyer demand is high. That increases the competition for properties and may even push prices higher. Here’s an example: In August, more than 71% of offers submitted by Redfin in San Francisco were met with competition. Those bidding wars caused homes to sell in just 24 days and for about 3% over the listing prices that month. In buyers’ markets, when there are more options to choose from, shoppers can bide their time and wait for the right home. Homes tend to take longer to sell in market conditions like those.
Location, Location, Location
The old adage “Location, location, location” still rings true. There will be more demand for a home that’s located in a highly desirable neighborhood near good schools, restaurants, or businesses than for one that’s located in a less opportune area. Here’s a look at the fastest-selling locales as of June 2020: Realtor.com has up-to-date DOM data on all of the country’s major metropolitan areas. Head here to see what the average statistics are for your market.
The Home’s Condition
Homes in tip-top shape will typically sell more quickly than those that need repairs or are cluttered with personal belongings. Buyers must be able to imagine how they’ll live in a house, and they’ll have a hard time doing that if the home looks like it belongs to you or if it’s a mess. One quick solution to this problem involves clearing out half the furniture. Large pieces can overwhelm a space and make the area seem smaller. You might want to tuck away those family portraits on the walls, too.
Seasonal Factors
Days on market can also depend on when you list your house. Most people aren’t actively looking to buy a new home during the winter, and the weather can be a factor in some areas, too. Overall, November, December, January, and February tend to be the slowest times for home sellers. Those months also tend to be less profitable. Research shows that home prices are lowest in the fourth quarter of the year. Spring and summer tend to be the best times to sell a house, as many families want to move before the new school year begins. In fact, according to Zillow, the best time to sell is the first half of May. Homes listed then sell six days more quickly than average.
Your Agent
If you’ve chosen to list your home using a real estate agent, this can also factor into the speed of your sale. Your agent’s marketing tactics, experience, and overall market know-how can all play roles in how quickly you find a buyer and at what price you sell. The average agent has about nine years of experience and at least some college education, but not all agents are created equal. Make sure to interview a few agents before determining who will list your property.
