SEATTLE, July 22, 2016 /PRNewswire/ -- Homes are
selling an average of a week faster than they did a year ago,
meaning home shoppers should be prepared to move quickly in a
competitive housing market, according to the June Zillow® Real
Estate Market Reportsi.
Tight inventory continues to be a major factor for home
shoppers. 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.
The length of time 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.
The 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," said Zillow Chief Economist Dr. Svenja Gudell. "If you're looking for a home, be
prepared to move quickly. 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."
Tips for buyers in a competitive market
- Meet with your lender early and get preapproved for a loan –
even before you begin seriously shopping for your new home.
- Work with an agent who has expertise in the local market. Read
reviews on local agents and find someone with a successful record
in a tough market.
- Request to pre-inspect a home before submitting an offer. You
risk losing a few hundred dollars if you end up not wanting the
house; but if you do, you'll be able to submit an offer not
contingent on home inspections.
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 June
2015. 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 Indexii of $1,409.
Metropolitan
Area
|
Median Days on
Market
|
1-Year Change in
Days on Market
|
1-Year Inventory
Change (%)
|
June Zillow Home
Value Indexiii
|
United
States
|
78
|
-8
|
-4.7%
|
$187,000
|
New York/Northern New
Jersey
|
157
|
-6
|
-9.2%
|
$386,800
|
Los Angeles-Long
Beach-Anaheim, CA
|
64
|
0
|
-7.6%
|
$572,400
|
Chicago,
IL
|
97
|
-6
|
-13.3%
|
$198,200
|
Dallas-Fort Worth,
TX
|
56
|
6
|
-20.5%
|
$189,500
|
Philadelphia,
PA
|
98
|
-15
|
-10.2%
|
$208,500
|
Houston,
TX
|
70
|
1
|
4.4%
|
$172,900
|
Washington,
DC
|
68
|
-5
|
-12.1%
|
$368,700
|
Miami-Fort
Lauderdale, FL
|
103
|
5
|
13.5%
|
$235,500
|
Atlanta,
GA
|
76
|
-6
|
-6.4%
|
$166,700
|
Boston, MA
|
71
|
-2
|
-23.2%
|
$394,400
|
San Francisco,
CA
|
43
|
1
|
4.4%
|
$812,300
|
Detroit,
MI
|
84
|
-9
|
-16.5%
|
$127,300
|
Riverside,
CA
|
77
|
-3
|
-6.5%
|
$309,400
|
Phoenix,
AZ
|
70
|
0
|
8.9%
|
$221,400
|
Seattle,
WA
|
47
|
-3
|
-15.0%
|
$392,000
|
Minneapolis-St Paul,
MN
|
75
|
-5
|
-0.9%
|
$227,400
|
San Diego,
CA
|
61
|
-4
|
10.3%
|
$512,900
|
St. Louis,
MO
|
74
|
-4
|
-13.3%
|
$142,500
|
Tampa, FL
|
78
|
-10
|
-8.9%
|
$167,700
|
Baltimore,
MD
|
99
|
-7
|
-11.6%
|
$251,400
|
Denver, CO
|
52
|
0
|
4.4%
|
$338,500
|
Pittsburgh,
PA
|
97
|
-15
|
2.1%
|
$130,400
|
Portland,
OR
|
51
|
-4
|
-23.7%
|
$330,800
|
Charlotte,
NC
|
70
|
-15
|
-11.5%
|
$162,300
|
Sacramento,
CA
|
55
|
-4
|
-13.7%
|
$341,900
|
San Antonio,
TX
|
69
|
-4
|
20.4%
|
$152,300
|
Orlando,
FL
|
81
|
-7
|
-12.3%
|
$186,400
|
Cincinnati,
OH
|
83
|
-8
|
-20.4%
|
$143,800
|
Cleveland,
OH
|
93
|
-1
|
-20.2%
|
$128,500
|
Kansas City,
MO
|
70
|
-5
|
-26.1%
|
$149,100
|
Las Vegas,
NV
|
73
|
1
|
13.8%
|
$203,800
|
Columbus,
OH
|
74
|
-3
|
-14.4%
|
$156,000
|
Indianapolis,
IN
|
85
|
-11
|
-22.2%
|
$130,200
|
San Jose,
CA
|
43
|
4
|
15.2%
|
$957,900
|
Austin, TX
|
57
|
-1
|
1.1%
|
$252,900
|
Zillow
Zillow® is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Zillow also sponsors the bi-annual Zillow Housing Confidence
Index (ZHCI) which measures consumer confidence in local housing
markets, both currently and over time. Launched in 2006, Zillow is
owned and operated by Zillow Group (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i The Zillow Real Estate Market Reports are a monthly
overview of the national and local real estate markets. The reports
are compiled by Zillow Real Estate Research. For more information,
visit www.zillow.com/research/. The data in Zillow's Real Estate
Market Reports are aggregated from public sources by a number of
data providers for 928 metropolitan and micropolitan areas dating
back to 1996. Mortgage and home loan data are typically recorded in
each county and publicly available through a county recorder's
office. All current monthly data at the national, state, metro,
city, ZIP code and neighborhood level can be accessed at
www.zillow.com/local-info/ and www.zillow.com/research/data.
ii The Zillow Rent Index (ZRI) is the median Rent
Zestimate® (estimated monthly rental price) for a given geographic
area on a given day, and includes the value of all single-family
residences, condominiums, cooperatives and apartments in Zillow's
database, regardless of whether they are currently listed for rent.
It is expressed in dollars.
iii The Zillow Home Value Index (ZHVI) is the median
estimated home value for a given geographic area on a given day and
includes the value of all single-family residences, condominiums
and cooperatives, regardless of whether they sold within a given
period. It is expressed in dollars, and seasonally adjusted.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/homes-selling-fast-amid-low-supply-300302568.html
SOURCE Zillow