Tips & Advice
What is a normal timeframe to sell?
Like everything in the economy, the housing market fluctuates. When conditions in the real estate market give sellers an advantage, we say it’s a “seller’s market,” and when buyers have the advantage, we say it’s a “buyer’s market.”
A seller’s market typically means that houses sell faster and buyers have less room to negotiate for repairs, upgrades, or closing costs included in the sales contract. During the pandemic, we hit an extreme seller’s market, and properties were receiving multiple offers.
Buying was so competitive that many sellers and their real estate agents were able to list a home with a date 2-3 days out as a deadline. A house might go up for sale on March 1, with a deadline for offers on March 2nd or 3rd.
This extreme was very unusual, and in late 2022, the market is getting back to normal.
Coming out of the pandemic, interest rates for home loans have risen, and more homes are sitting on the market a little longer. This means that buyers are not at such a disadvantage, and don’t have to compete against other buyers as quickly or aggressively as they have since mid-2020.
One test of the real estate market is the “days on market,” which is the number of days from the time your home’s listing becomes active (and publicly available) and the day that everyone signs final paperwork and the sale is closed.
Before the Pandemic, and average real estate market expected it to take 60-90 days on market to sell a house. This makes sense with most buyers requiring a mortgage loan, and the process of underwriting and gathering documents, appraisal, etc. for final mortgage approval.
To get a snapshot of recent data, let’s look at information from the Federal Reserve Bank of St. Louis. They compile great data from multiple sources, including Realtor.com and the National Association of Realtors (NAR). Since May of 2022, they show days on market trending longer and getting closer to that 60-90 average. By September 2022, the national average reached 50 days on market.
Every home is different, and real estate markets vary from city to city and state to state, but looking at the national trends and averages can help you start to estimate how long it could take to sell your home to a typical buyer.
If you’ve read enough, but still have more you want to process and consider, we’re available by phone, just call and let us know how we can help.
