Shrinking inventory limits options for buyers this home shopping season, leading to more competition
Home shoppers should be prepared to move quickly when they find a home they want, as homes sold at their fastest pace on record in 2017.
It took 81 days to sell the median U.S. home in 2017, nine days faster than the year prior. The quickest selling month for the typical home was June 2017, when it took about 73 days for a home to sell, including closing. 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.
Buyers are facing a limited market this home shopping season, as has been the case for the past three years. Inventory across the country has fallen on a year-over-year basis for 37 consecutive months, leaving fewer options for buyers. Last year, nearly a quarter of all homes sold for more than the listed price, signaling that tight competition may be leading to bidding wars and driving prices higheri.
"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 – working with a great agent, getting financing preapproved – can help a buyer make a stand-out offer."
The typical buyer spends just over four months searching for a home and makes two offers before successfully buying a home, according to the 2017 Zillow Group Consumer Housing Trends Reportii. 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 (80 days) than in 2017 (81 days). Homes in Miami sold in 110 days in both years.
The fastest-selling market in 2017 was San Jose, Calif., 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.
|Metropolitan Area||2017 Average Days on Zillow||Fastest-Selling Month||Days on Zillow During Fastest-Selling Month|
|United States||81||June 2017||73|
|New York / Northern New Jersey||134||July 2017||122|
|Los Angeles, CA||64||May 2017||59|
|Chicago, IL||91||June 2017||82|
|Dallas, TX||55||May/June 2017||49|
|Philadelphia, PA||97||June 2017||89|
|Houston, TX||81||April/May 2015||65|
|Washington, DC||75||May 2017||64|
|Miami, FL||110||June 2015||97|
|Atlanta, GA||71||June 2017||63|
|Boston, MA||72||June 2017||67|
|San Francisco, CA||43||April/May 2017||41|
|Detroit, MI||73||June 2017||65|
|Riverside, CA||74||June 2017||68|
|Phoenix, AZ||66||October 2017||62|
|Seattle, WA||47||May/June 2017||42|
|Minneapolis, MN||69||May 2017||63|
|San Diego, CA||56||May 2017||52|
|Saint Louis, MO||74||July 2017||67|
|Tampa, FL||81||July/August 2017||77|
|Baltimore, MD||94||June 2017||82|
|Denver, CO||52||June 2017||47|
|Pittsburgh, PA||95||July 2017||83|
|Portland, OR||60||May 2017||51|
|Charlotte, NC||67||August 2017||61|
|Sacramento, CA||54||May/June 2017||44|
|San Antonio, TX||73||June 2017||66|
|Orlando, FL||86||July 2017||78|
|Cincinnati, OH||74||July 2017||68|
|Cleveland, OH||80||July 2017||71|
|Kansas City, MO||62||July/August 2017||58|
|Las Vegas, NV||62||August/September 2017||58|
|Columbus, OH||63||July 2017||57|
|Indianapolis, IN||73||August 2017||66|
|San Jose, CA||41||October/November 2017||39|
|Austin, TX||61||May 2017||53|
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
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