Sales May Be Slowing, but the Homebuying Market Remains Competitive
The for-sale market might be slowing as mortgage rates and list prices soar to new highs, but competition remains tight among buyers who can still afford to purchase new homes. Homes are spending a median of just 14 days on the market compared to 96 days in 2011, and 82% of homes listed in the first two quarters of 2022 sold in just one month compared to one-quarter of homes sold in under a month in 2011, according to the National Association of Realtors.
The housing market is becoming more balanced amid softening demand from wary homebuyers, but some popular regional markets are still seeing speedy sales and toe-to-toe competition.
Notably, the market has contracted as fewer buyers can afford to purchase in today’s market, but in many areas of the country, the market does remain a seller’s market. For every home that was listed, there were 2.8 offers. This is down from the frenzied market from April of this year when every home listed had 5.5 offers. Historically 2.8 offers is still a competitive housing market.