America’s red-hot property market is finally showing signs of cooling, as asking prices are slashed and experts predict home values will soon start to fall.
But a fascinating new study shows where sellers might have the best luck getting rid of their properties quickly.
Analysis by real estate experts at Agent Advice shows that homes sell quickest in Massachusetts and New Hampshire where they spend just 32 days on the market.
Washington and Tennessee came in second and third place respectively as homes there take 33 and 33.5 days respectively to sell after being listed.
The top ten was rounded out by Colorado, Arizona, Rhode Island, Nevada, Virginia and California. Properties in these states all spend less than 37 days on the market on average.
A fascinating new study shows where sellers might have the most luck getting rid of their properties quickly
By comparison, New York sellers have the longest wait to find a buyer. On average it takes 61.5 days to sell a home in the Big Apple – almost twice as long as Massachusetts or New Hampshire.
It was followed by Montana and West Virginia where homes take 59.5 and 56 days respectively to sell.
Across the board, the average American home is bought within 43 days of being listed. The analysis looked at historical data from realtors to establish how long it takes for homes to sell.
Chris Heller, co-founder of Agent Advice, said: ‘If you are looking to sell your home, there are many things to consider that might help you get a sale sooner, like opting to sell your home in the spring or summer months over winter.’
The findings come as home buyers face a perfect storm of elevated house prices and soaring mortgage rates – making housing affordability worse than it was in the lead-up to the financial crisis in 2006.
The latest data from government-backed lender Freddie Mac shows the average rate on a 30-year fixed rate mortgage is hovering at 7.49 percent.
But the majority of American homeowners fixed a deal when rates were between two and three percent as recently as 2021.
It means many are reluctant to move as doing so could add as much as another $1,000 to their monthly payments.
Some 82 percent of would-be homebuyers recently told Freddie Mac they felt ‘locked into’ their current properties.
Despite stalling demand, prices have remained artificially high thanks to limited housing inventory.
Home buyers are currently facing a perfect storm of elevated house prices and soaring mortgage rates – making housing affordability worse than it was in the lead-up to the financial crisis in 2006
Last week Zillow economist Jeff Tucker said buyers were in a ‘sweet spot’ this fall as 9.2 percent of new home listings had their asking prices slashed in the week to September 23
But new data suggests the tide may be turning. Last week Zillow economist Jeff Tucker said buyers were in a ‘sweet spot’ this fall as 9.2 percent of new home listings had their asking prices slashed in the week to September 23.
It marked an increase from 6 percent in April and 7.9 percent in the same week in September 2019.
Similarly, a former Oppenheimer analyst who was once dubbed the ‘Oracle of Wall Street’ said this week house prices could fall for the first time in a decade – thanks to an ageing booming population.
In comments quoted by Insider, she said: ‘I’m always data-driven, so it’s just the math. If you look at the percentage of homeowners that are 50 and up, that’s a staggering amount.
‘And if you look at it historically, 50% of those over 50 typically sell and downsize, and that’s expense-driven.’
Figures from the National Association of Realtors show that the average age of a first-time homebuyer is now at a record-high of 36 years old.
Similarly Census data reveals only 10 percent of homeowners are under the age of 35.
Whitney speculates that the surge in Boomers downsizing will ease housing shortages – which have been blamed for keeping the market red-hot despite soaring mortgage rates.
She added: ‘It’s just a matter of time. Again, it’s not something that happens in one fell swoop, but it’ll be interesting to see the repercussions of that.’
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