If you plan to list your home for sale this year, it’s strategic to know how long you can expect it to be on the market. Knowing this average timeline gives you a fair idea of how much time you have to look for another home, prepare your belongings, market your current home, and conduct other practical tasks related to moving.
So, without further delay, how long does a house for sale stay on the real estate market in 2024, according to the most current data?
The Average House’s Time on The Market in 2024
The median time a house is on the market in 2024, according to statistics from Fred Economic Data, is 61 days. This is the average time based on data from all 50 states. Also, the average sale price is $431,000 (Source: Motley Fool, Q3 2023 home prices). Therefore, you can expect your home to get under contract after it has been on the market between two to three months. However, you may also wait a shorter or longer period than this.
These 61 days include the time it takes to go from active to under contract plus 30-49 days required for financing approval.
Let’s compare this to previous years. In 2023, the average time on the market was 83 days, similar to 2022. In 2021, homes sat on the market for 71 days, with 22 days to get under contract and another 49 days to officially close. Therefore, on a national level, there has been a decrease of about a week and a half, from listing to closing, for the typical home.
What affects the amount of time a house is on the market?
Many factors affect the amount of time a house is on the market. Knowing them helps you create the best plan for selling your home effectively and potentially shorten its time on the market. While some elements are out of your control, you can make your home more attractive to prospective homebuyers based on these conditions. Here are the things that influence the amount of time a house is on the market:
1. Your Home’s Listing Price
A property priced fairly for its condition will typically sell faster than one priced too low or too high. An experienced real estate agent will be able to price your home correctly through a comparative market analysis and common sense.
2. Your Home’s Condition
Offering a move-in ready house without flaws is generally a plus, especially when you’re in a tough market or when interest rates are high.
3. The Local Market
Each state and city has unique average home values and market conditions. Your market may be hot, or it may be slower than other places. Adjust your strategy according to the level of demand. For example, in Virginia, it takes 38 days to get an offer and 35 days to close on average, which is around 12.0% faster than the national average.
4. Current Mortgage Rates
When the Fed changes interest rates, it directly influences buyer behavior. Lower interest rates make home loans more affordable. However, they can increase home prices if there is substantial demand in the housing market like in 2021 and early 2022.
In a market when the Federal Reserve sustains high interest rates, buyers are inclined to accept fewer imperfections compared to last year. You may also offer to pay closing costs and for repairs or give a credit for a new roof or HVAC to sweeten the deal.
Typically, higher mortgage rates bring down home prices, but in the case of 2023’s national market, a low inventory keeps these housing prices high. We are still tracking how the elevated interest rates will impact 2024’s home prices.
Ways to Decrease a House’s Time-on-Market
There are ways to decrease your real estate listing’s time-on-market under any condition. No market is inherently “bad” if you know how to work around the uncontrollable elements. At the end of the day, a faster home sale depends on your strategy.
1. Price the home correctly.
Too often, homeowners want to go by the Zestimate to list their home. Still, these prices are automated and don’t figure in other elements like the home’s condition, buyer demand, housing supply, and all relevant comps.
When a house is priced too high, it will increase its days on the market, which can lead to a price drop anyway. When a house is priced too low, it can get more attention, but people can incorrectly assume that it needs extensive work. You can also lose out on thousands.
Price your home correctly with a real estate agent.
Did you know that working with a real estate agent is one of the best ways to correctly value your home? Rachel Lowell, one of our solutions experts, weighs in on the importance of using a realtor to represent you when purchasing a home.
“Working with an agent who specializes in new construction is imperative. There are many differences when purchasing a home brand new versus a used home. There are typically differences in financing and incentives, the contract process, as well as after-closing home warranties and procedures. Working with an agent who is knowledgeable in this field can help guarantee that you’re getting the most from your new home!”
Thank you, Rachel, for your expertise!
2. Market the home with professional photos.
Houses with professional pictures sell 32% faster, and homes with professional aerial photos sell 68% faster. These also get more attention and showings.
3. Market your home with a video.
Homes with videos in their marketing get up to four times more inquiries than homes without this type of media (National Association of Realtors- NAR). Videos and remote tour options are also helpful for individuals who have pandemic health concerns.
4. Declutter and use neutral paint.
People want to see themselves in the home – not your home. Make it neutral so they can visualize themselves in it.
5. Make your home smell good.
Don’t underestimate scent in the sales process. The biggest hotel brands spend gobs of money crafting and diffusing signature scents in their high-end properties. It will impact its mood. Also, another study by Yeshomebuyers reveals that a bad scent, like cigarette smoke, can deter 23% of buyers from committing to an otherwise perfect house.
6. Don’t turn down reasonable offers.
If you’re in a seller’s market, homeowners can typically cede to fewer demands and choose among many offers to get the best one. In a buyer’s market, sellers must be realistic and understand that some seller concessions need to happen for an existing home sale. Refusing to pay for closing costs or repair a significant flaw can delay your home sale.
Sell Your Home with Marketplace Homes
The best thing you can do is listen to your real estate agent and follow their advice. Each property is unique and may require more or less work to expedite the home sale process. In this way, you can prevent an unnecessary slowdown. Make your listing stand out among the other homes for sale and you’ll increase your chances of selling quickly.
Frequently Asked Questions About Selling Your Home
Q: Do I have to move out right away after the closing date?
No, with a sale-leaseback (sell house and stay in it as a temporary renter), you can gain extra time to pack your belongings and move out to your new home. It’s a convenience that you can ask your listing agent to negotiate before accepting the offer. The housing market forecasts that buyers have considerable leverage right now, but you can potentially get this negotiated if you offer seller concessions like accepting the offer slightly below asking price.
Q: How long should you stay in a house before selling it?
Different realtors have opinions on the best time to sell after living in a home. It all depends on how much equity you have built in the home. It’s generally better to live in your single-family home for a few years until you can sell it for a profit.
Housing affordability falls more in your favor when you have more equity to use to pay down the loan with your future lender. Rate hikes are making things trickier to move quickly too, so it’s good to check on expert housing market predictions, your desired market’s median home prices, and your personal financial situation to gauge your next steps.
Q: Can I sell my house and stay in it?
If your listing agent successfully negotiates a sale-leaseback in the sales contract, then you can extend your move-out date with a temporary rental period in your former house. The buyer becomes your “landlord” and you can have a few extra days or weeks to move out. A leaseback can be free or negotiated at a set price.
Q: What stays with a house when you sell it?
When you sell your house, everything listed on the contract as “conveyances” as write-ons or checked boxes must remain in the house. For example, on most real estate contracts, the buyer’s agent will ensure that essential items like appliances, HVAC units, ceiling fans, and garage door openers convey. Buyers can request other things to remain like furniture or a fancy chandelier, but these must be mentioned explicitly in the contract and approved by the seller.
