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New rules set to shake up real estate market
The National Association of Realtors (NAR) massive real estate settlement that changes the way homes are bought and sold goes into effect on Saturday, August 17. FOX Business' Katrina Campins joined LiveNOW from FOX to break down how the new rules could impact the housing market.
null - How long a house for sale sits on the market varies depending on many factors, including the location, season, price, condition, and demand. And for sellers, the length of time can really have an impact on the ultimate sale price.
In July 2024, the median days on the market – or the number of days a home sat before going under contract – was 34 days, according to real estate brokerage Redfin. That’s up five days compared to the same period last year.
FILE - A for sale sign is displayed outside of a home for sale on Aug. 16, 2024, in Los Angeles, California. (Photo by PATRICK T. FALLON/AFP via Getty Images)
This, of course, doesn’t include the time it takes to close a sale, which can add another several weeks to the total time between listing and closing.
Nationwide, the median number of days to close on a sale is 24.7 days, according to Redfin, with the most recent data ending on Sept. 1, 2024.
Overall, there were 1,835,669 homes for sale in the U.S. in July, up 19.2% year-over-year.
How long homes spend on market before going under contract
Redfin regularly tracks median days on market data, or the median number of days homes spent on the market during a given period before a seller accepts an offer from a buyer.
This data excludes homes that spent more than a year on the market before going under contract, the company said.
For some states, homes for sale sit on the market significantly longer than others. In Hawaii, the median number of days a home spends on the market is 80, compared to just 14 in Alaska, according to Redfin’s data.
Data for North Dakota and New Mexico was not available.
Map: Median days on the market, by state
States with the longest median days on the market
- Hawaii: 80 days
- Montana: 63 days
- South Carolina: 62 days
- Florida: 59 days
- Louisiana: 57 days
States with the shortest median days on the market
- Alaska: 14 days
- Washington state: 16 days
- Nebraska: 18 days
- Indiana: 20 days
- Massachusetts: 20 days
Factors that affect how quickly a home sells
Some houses can sell in a weekend, while others take longer – thanks to several factors.
This includes the neighborhood in which the home is located and the housing market, which is constantly changing. Currently, many buyers are facing both high home prices and mortgage rates.
"Sellers can’t control how much competition they’ll face from other sellers," Realtor.com Chief Economist Danielle Hale said in blog post earlier this year. "But they can make sure that they prepare thoughtfully before listing their home for sale, including making necessary repairs, cleaning or decluttering, and taking great photos to showcase their property and entice buyers to visit and imagine calling it home."
Understanding current market conditions will save sellers from pricing their home too high – often leading to a home sitting on the market and becoming stale, according to Realtor.com.
The timing of when the home is listed can also make a difference.
"Generally, by choosing to list your property during peak seasons such as spring or summer, when buyer activity is typically higher, you will attract more interest and potentially land better offers on your home," Realtor.com said.
Lastly, vetting potential real estate agents who have a proven track record in that specific market can help, too.