The US home sales accelerated at a record speed in 2017, with buyers acquiring properties immediately after they were announced for sale. On average, only 81 days were needed to sell a home from the launch until the deal was finalized, with the properties being sold as quickly as possible in June, when only 73 days were needed.
Given that four to six weeks are needed to complete the sale of a home, it means that homes are usually kept on the market about 30 days before a contract is concluded and that buyers face a limited market.
The offering across the country declines on an annual basis for 37 consecutive months, and nearly 25% of homes are sold at a higher price than announced. This is a signal that increased competition can lead to fierce bidding and push prices upwards.
A survey found that buyers usually look for a home for over four months and make two offers before a successful purchase. As homes in a number of markets have been sold in less time, buyers need to be ready to act quickly after finding the home they want to buy. The homes in the US were sold faster in 2017 than a year earlier on almost all of the 35 largest residential markets. In Houston, homes were sold a little faster in 2016 – 80 days compared to 81 days in 2017, while Miami’s homes have found a buyer for 110 days in both years.
The market with the fastest-sold housing in 2017 was San Jose in California, where homes usually housed a homeowner for 41 days. San Jose also recorded the biggest fall in stocks last year, down 26.8% from the previous year. Residences in San Jose were sold the fastest in October last year, when it was only 39 days between the announcement of the home for sale and the completion of the deal.