Houses in These Markets Sell in Less Than 20 Days

By Douglas A. McIntyre Published Aug 10, 7:30AM EDT

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Houses in These Markets Sell in Less Than 20 Days — © LOUOATES / iStock via Getty Images

Realtor.com just issued its July Housing Report. Commenting on the trends she saw, Realtor.com Chief Economist Danielle Hale said that smaller houses with lower prices have started to hit the market. In particular:

This is shifting the housing market balance in a more buyer-friendly direction, but buyers may not see as much price moderation as suggested by the national trend because it’s partly attributed to a shift toward smaller homes for sale. Still, if these changing inventory dynamics continue, we could see a wave of real estate activity heading into the latter part of the year.

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That is certainly an indication that prices could go even higher, a trend last seen in 2005 and 2006. At this point, Realtor.com’s analysis shows median prices for listed homes nationwide rose 10.3% year over year in July to $385,000.

Why has this happened in the housing market recently? Home prices have exploded upward in recent months. The carefully followed S&P Case-Shiller Indexes show that, nationally, home prices rose over 16% year over year in May. One market, Phoenix, posted a price increase of over 20% for the same period. The increase has been driven by the migration of people from the large coastal cities, which often have the highest home prices and highest costs of living. Working from home has allowed people to relocate. Furthermore, mortgage rates have made many homes affordable because the rates are historically low.
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A review of the 50 largest metro markets shows that demand for homes in some markets means that inventory turns over at a feverous pace. The typical U.S. home for sale was on the market for only 38 days in July. That is 22 days faster than in the same month of last year.

In some markets, a house stays on the market for well under 38 days. In Columbus, Denver, Nashville and Rochester, the median days on the market figure was 17. From July a year ago, that was down 21 days, 19 days, 14 days, 12 days, respectively.

Presumably, inventory that moves this quickly also drives up prices. Not always. The active median listing price in Rochester in July was $240,000, which was down 4% from in the same month last year.

Click here to see which county has the most expensive homes in America.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.