Properties Typically Sold Faster in January 2017 as Demand Outpaces Supply

In the monthly REALTORS^® Confidence Index Survey, the National Association of REALTORS^® asks members “For the last house that you closed in the past month, how long was it on the market from listing time to the time the seller accepted the buyer’s offer?”

Properties stayed on the market for fewer days in January 2017 compared to one year ago, amid strong demand and tight supply, according to the January 2017 REALTORS^® Confidence Index Survey Report, a monthly survey of REALTORS® about their sales activity and local market conditions.[1] Properties that sold in November 2016, December 2016, and January 2017 were typically on the market for less than 31 days in Washington, Oregon, Utah, Alaska, Kansas, Texas, Tennessee, and the District of Columbia.

Looking at the values over the last few years, in most states the median length of time that properties stay on the market has trended downwards, though the graphs also show that days on market in some states fluctuate seasonally.[2] Local conditions vary, and the data is provided for REALTORS^® who want to compare local markets against other states and the national summary.

Nationally, properties sold in January 2017 were typically on the market for 50 days (52 days in December 2016; 64 days in January 2016).[3] The length of time properties are on the market has fallen as demand has outpaced the inventory of homes for sale. In 2011, properties were typically on the market for 97 days.

Properties that are on the market for a shorter time tend to sell at the original list price or at a premium. Among transactions that closed in January 2017, 50 percent of properties that were on the market for less than one month sold at the original list price or at premium, while only 14 percent of properties that were on the market for 12 months or longer sold at the original list price or at a premium.

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[1]The author thanks Danielle Hale, Managing Director, Housing Research; Meredith Dunn, Research Communications Manager; and Amanda Riggs, Research Survey Analyst for their comments. Any errors are attributable to the author.

[2]To increase the number of observations for each state, the analysis is based on a 3-month rolling period. The states shown in these charts are those with approximately 150 observations.

[3] Respondents are asked, “For the last house that you closed in the past month, how long was it on the market from listing time to the time the seller accepted the buyer’s offer?” The median is the number of days at which half of the properties stayed on the market. In generating the median days on market at the state level, we use data for the last three surveys to have close to 30 observations. Small states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have fewer than 30 observations.