The average house in May sold in just 37 days, setting a new record. The previous record was set the month before, in April, when the average home sold in 40 days.
CNBC reports that tight inventory and high demand are making homes sell so quickly. The number of listings in May was 11 percent lower than the year before, and the nation’s supply is just 2.7 months, less than half the recommended amount for a healthy housing market.
Some local markets have homes selling at breakneck speeds. Half of Seattle’s homes sell in just seven days, while half of the homes in Denver sell in only six days.
Other markets with fast-selling homes include Grand Rapids, Mich., Portland, Ore., and Omaha, Neb. Buffalo, San Jose, and Seattle have experienced the largest drops in inventory.
The tight supply is only pushing home prices higher. The median price of a home sold in May jumped 6.8 percent compared with a year ago. That is about triple the average income gains and may already be hurting sales, as affordability weakens.