
Zillow: Homes ‘Flying Off Market’ At Fastest Pace Since 2010
Robert Aronheim, a realtor in northern Virginia just outside of Washington, D.C., offers this advice for would-be home buyers: “Look at as many houses as possible, but when you see a house you like, be ready to act quickly.”
Zillow, Seattle, offers the same advice–and it has the data to support. The company’s Home Value Index said both home prices and rents rose last year, with low inventory resulting in homes selling on average a week faster than they did a year ago.
“Buyers need to act quickly, as homes are flying off the market faster than at any time since 2010,” said Zillow Chief Economist Svenja Gudell.
Tight inventory continues to be a major factor for home shoppers, the report said. The supply of homes for sale is nearly 5 percent lower than it was a year ago and 38 percent lower than its peak level in 2011. With fewer available options, home shoppers are moving quickly to buy homes, with the average U.S. home closing after 78 days on the market. The 78-day average includes the time it takes to close, which is usually one or two months after the home goes under contract. This means that homes are pending within about a month of being listed.
Zillow said the length homes stay on the market before selling has been steadily decreasing since 2010, when homes took an average of five months to sell. The average time home buyers had in Pittsburgh, Philadelphia and Charlotte, N.C. dropped by at least two weeks, the biggest change among the largest U.S. metros.
Gudell said low inventory and quick-moving market combine to create a competitive home shopping market, especially for potential buyers looking for less expensive homes. The most expensive third of the market has experienced the smallest drop in available inventory compared to the rest of the market.
“Homes are selling faster than ever as the home shopping season hits its peak,” Gudell said. “Adding to this difficult buying environment is low inventory–there simply aren’t many homes to choose from. And while this looks like a good time to be a seller, potential move-up buyers may hesitate to list their homes and become buyers. Until the supply increases, it will remain a tough market to find a home.”
Zillow said the limited supply of homes is driving home values higher. The average U.S. home is worth $187,000, a 5.4 percent increase from a year ago. Home values have been increasing at 5 percent or faster on an annual basis for the past eight months. Rents are growing at the slowest pace in nearly two years, up 2.6 percent to a Zillow Rent Index of $1,409.