Source: https://www.corelogic.com/intelligence/the-pace-of-home-sales-slows-as-mortgage-rates-pick-up/
The median days on market for U.S. properties increased compared to a year ago
Quick Takes
Record-high home prices and rising mortgage rates have shut out a number of potential buyers, and the reduced competition gives other shoppers more time to house hunt before making an offer.
Figure 1 shows the median days on market before a listing enters pending status for the month of September of each year since 2000. As of September 2022, the median days on market before pending was 19 days, which is eight days more than the median time in September 2021. However, it’s still less than one-third of the 20-year average of 35 days before the pandemic.
Figure 1: Days On Market Before Pending Increased in 2022
Median DOM in September of Each Year
The share of homes selling within 30 days of the initial listing date is another indicator of slightly subdued buyer competition. As many people travel during the summer and families look to settle before the school year begins, the share of homes sold within 30 days leveled off after peaking at 73% in May 2022. As of September 2022, the 12-month average of the share remained elevated at 56%.
Figure 2: Share of Homes Sold Within 30 Days Levels Off
Figure 3: Share of Inventory Over Six Months Bottoms Out
Figure 3 shows the share of for-sale inventory that was on the market for more than 180 days, a measure indicating that homes are difficult to sell. In September 2022, that share was 6.1%, a historic low within the last two decades and half of the 12.1% share recorded in September 2019. As 30-year fixed mortgage rates hover around 6% for the first time since 2009, buyers face higher monthly payments. With affordability eroding, homes are not selling as fast as they were. As always, market trends vary by geography, and although most U.S. metros are seeing homes sell quicker than before the pandemic, there are exceptions, as many companies now allow employees to work remotely. For example, homes in San Francisco, which has a very high cost of living, stayed on the market longer in September 2022 compared with three years ago.
To learn more about the data behind this article and what CoreLogic has to offer, visit https://www.corelogic.com/.
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