Amid record low inventory and sky-high demand, the average American home now sits on the market for only seven days — a phenomenon that is pushing many homeowners into moving quickly.
According to a National Association of Realtors survey released on Thursday, the time that a home spent on the market before going into contract went down to seven days between July 2020 and June 2021.
That is a record low since this data first started to be tracked in 1989.
As a result, many homebuyers are competing with multiple offers for every home they consider. In many growing cities, families taking out a mortgage also need to compete with investors and home-flippers who can make all-cash offers.
The survey also found that sellers now almost always get their asking price or more while, in the past it was common to get slightly below what you wanted for your home.
We’re holding a Veterans Day Sale for our Action Alerts PLUS investment club. Get in on the conversation and get the latest investment ideas and trading strategies. For 48 hours, we’re offering 30% off with this special sale. Click here and save $150.
As househunters Anshul and Angharad Bhardwaj told the Wall Street Journal, they had to make 20 unsuccessful offers on homes in the Salt Lake City area before they could buy a house for $780,000 in February.
They nearly lost this one too: they made an offer one hour after touring but were told that someone had beat them to it. They made a backup offer after that contract fell through.
"It was an emotionally challenging time for both of us,” Bhardwaj told the WSJ. “I couldn’t have been able to buy my house had I waited for six more months. I am happy I pulled the trigger.”
The situation is not likely to improve any time soon — in August, the S&P CoreLogic Case-Shiller U.S. National Home Price Index found that an average home in the US cost 19.8% more than it did last year.
Cities like Phoenix, San Diego and Tampa saw growth of 33.0%, 26.2%, and 25.9%, respectively.