According to Zillow’s June Real Estate Market report, home buyers sitting on the fence need to get off the fence and act fast. The current average days a home stays on the market is now at 78 days, which is 7 days faster than a year ago. What’s more, the 78 days includes closing time, meaning that homes are quickly going to pending status within a month of being listed. The length of time a home stays on the market has been steadily decreasing since 2010.
Of course, the low inventory in most markets across the U.S. is a contributing factor. The inventory levels for most markets is 5% lower than 2015 and 38% lower than 2011. Low inventory and a quick moving market is driving home prices up higher. Buyers sitting on the fence need to be prepared to act quickly, especially when it comes to less expensive homes.
While this is a positive for sellers, move up sellers may find themselves reluctant to enter the buyer’s market. Until supply increases, it will continue to be a challenging market for many first-time buyers.