Market Conditions Impacting Sold Days on Market in Nation’s Top Metros
Pro Teck, Waltham, Mass., said tight inventories and demand for homes already on sale are translating to homes selling in near record times in many U.S. markets.
The company’s monthly Home Value Forecast said lack of inventory is not only driving up home price gains (with price wars returning to some markets) but also causing a decrease in Sold Days on Market–the time from listing to close.
Seven markets report Sold Days on Market under the 50-day closing average: San Jose, Calif. (41); San Francisco (42); Oakland, Calif. (45); Denver (49); Boulder, Colo. (49); Dallas (50); and Fort Worth, Texas (50).
“In these markets, multiple bids are coming on listing day,” said Pro Teck CEO Tom O’Grady. “To be competitive, winning bidders are pre-approved, have no contingencies and often have larger down payments–all leading to less risk and a quicker close with the banks.”
O’Grady noted quicker closing days in San Jose have been the norm for the past few years, with dips to the 50-day range each of the past few years during the second quarter. “With the lack of inventory and increasing employment in San Jose, we don’t see these market dynamics changing anytime soon,” he said.
The report said western states continue to dominate as the most competitive area, with five metros from California, four from Washington and one from Idaho. “Limited housing supply, increasing prices and decreasing market time is now the new normal in our top metros,” the report said.
The Top 10 Metros include: Bellingham, Wash.; Boise City, Idaho; Fresno, Calif.; Modesto, Calif.; Mount Vernon, Wash.; Sacramento, Calif.; San Diego, Calif.; Seattle; and Stockton, Calif.
Bottom 10 metros include Huntsville, Ala.; Santa Fe, N.M.; Miami; Shreveport, La.; Chicago; Lake County, Ill.; Milwaukee, Wis.; Virginia Beach, Va.; Atlantic City, N.J.; and Rockford, Ill.
“Recent developments, including the announced $375 million renovation/reopening of Trump Taj Mahal by Hard Rock casino and the construction of a satellite campus of Stockton University will bring jobs back to [Atlantic City] and hopefully reverse the trends of the last 10 years,” the report said.
