What Is the Average Time a House Is on the Market?
Over the last year, houses were selling fast on the Housing Market! Mortgage rates hit a historic low during the COVID-19 pandemic, and buyers were scrambling to lock in those interest rates. Houses were selling in less than a day in some areas, while bidding wars broke out in others.
Thinking about selling your house? Wondering how long the process would take? Read on to learn more about the average time a house is on the market and what factors influence that timeline.
Before we get into all the factors that can have an impact on how long it takes your house to sell, let’s talk some about the selling process.
The first step in selling your house is prepping it for sale; this includes everything from making minor repairs and repainting, to decluttering and packing away personal items.
Once your house is listed on the market, you’ll have to wait for an offer and negotiate with the potential buyers. From there, you’ll have inspections and further negotiations while you wait for their mortgage to get approved. Only then can you get to the closing day and get the money from the sale of your house.
One of the biggest factors that can influence how long it takes your house to sell is where you live.
Certain states have hotter real estate markets than others, and your house will spend fewer days on the market.
Houses in Washington, Oregon, Idaho, Montana, Utah, Arizona, New Hampshire, Vermont, and Maine will all sell quickly. Houses in Louisiana, Mississippi, Alabama, Arkansas, Oklahoma, New Mexico, Wyoming, North Dakota, Illinois, West Virginia, and Maryland will take longer to move.
Your particular location in your city will also impact the amount of time your house spends on the market. Houses in more desirable neighborhoods will move faster than those in rougher areas.
State of the Market
Of course, the current state of the housing market will also have a huge impact on how long your house sits on the market.
In the last year, we saw one of the hottest real estate markets in living memory. Houses were selling in a matter of hours, and the biggest problem for buyers was getting an offer in before anyone else.
Some of the real estate market frenzy of this year is starting to slow down, so we’re likely to see houses taking a little longer to sell. Experts don’t predict that the housing market will go into a slump, just that it will return to more normal conditions.
However, you shouldn’t count on your house selling in less than 24 hours if you go through the traditional sale process.
Another enormous factor impacting the sale time of your house is, well, your house. Although there are buyers for every price point, the overall condition of your house will change how desirable it is to buyers; particularly, the way your house looks in the listing and on tours will change whether buyers are excited to make offers or not.
Part of the reason for prep work on your house is to make sure it’s as appealing as possible to potential buyers.
Making small repairs and painting things a neutral color can make it easier for buyers to see the turnkey potential. Also, packing away personal items and decluttering will help buyers envision themselves living in your beautiful, clean house.
Your List Price
In addition to the state of your house, the price you list it at can make a huge difference in your time on the market. Many sellers worry that if they list their house too low, they’ll lose out on money they could make from the sale. But on the other hand, if you list it too high, you’ll drive away potential buyers, even if you lower the price later.
Before you list your house, it’s a good idea to talk to a realtor about how much you should list it for; look at nearby houses that are similar in size and number of bedrooms as yours.
Take that information and base your list price around that number, aka., the Fair Market Value (FMV) of your house.
Overall Average Sale Time
So, with all these factors accounted for, how long can you actually expect your house to spend on the market before it sells? As of September, houses in the United States spent an average of 43 days on the market before they went under contract. That’s up a little from the historic low of 37 days in June of this year.
It’s important to note that the number of days on the market is not the same as your overall sale time. Once you have an accepted offer in hand, you’ll still need to go through the inspection and mortgage process with your buyer. One way to avoid that and keep your house’s sale time short is to sell to a cash buyer who will agree to buy your house as-is.
Learn More About the Average Time a House Is on the Market
The number of days your house spends on the market will depend on a number of factors. Everything from where you live and the state of your house to your list price and the current market temperature can change your sale timeline. But overall, the average time a house is on the market is currently sitting around forty-three days.
If you’d like to learn more ways to sell a house fast, check out the rest of our site at Selling.House. We can help you sell your house for cash fast, and we beat the other guys’ offers. Contact us today and sell your house as-is with no fees in as little as 24 hours!