The real estate market can be unpredictable and intimidating. Homeowners looking to sell in 2022 face challenges finding the right list price, adapting to unstable market conditions, choosing a realtor that fits their needs, and more.
Determining factors like mortgage rates and local market conditions are out of your hands as a home seller. However, you can take action to increase your home’s market value and decrease the length of time it spends sitting on the market.
If you’re looking at a potential home sale, we are here to break down the average time a property stays on the Idaho housing market to help make the process a little simpler. Here is an explanation for home sellers about past, present, and future market trends and suggestions for minimizing the time your house sits on the market before selling.
Average Time House Stays on Market Before 2022
Let’s take a closer look at the market conditions of the years leading up to 2020.
In 2019, the average number of days on market before going under contract was 30. It takes additional time to complete the closing period, which means the average time it took to officially sell a house was between 55-70 days. The pandemic then caused housing market trends to vary.
At the beginning of 2020, time spent on the market rose to an average of 80 or more days, including the closing period. But, then, the economic challenges of the pandemic directly impacted mortgage interest rates, lowering them to record numbers that drove the housing market into insanity.
By the middle of 2020, the average number of days on market shot down to 61. September 2020 saw the lowest number of days on market that year, coming in at 55 days on average.
2021 brought a seller’s market that lowered the average time a house stays on market to 36 days. An incredibly low housing inventory and increased building materials cost contributed to its seller’s market. A low inventory with high demand from home buyers gives home sellers the advantage in negotiations surrounding sales prices.
Homes spent less time on the market as home buyers tended to waive certain conditions, like home inspection, and negotiate less to secure properties during the low-inventory period.
Average Time House Stays on Market in 2022
Now that you are up to speed on the market conditions leading up to the present day, let’s examine the average time it takes to sell a house in 2022.
Sellers Market Continues
January 2022 had longer selling periods reaching 62 days on average. By spring, that time was cut in half to around 30 days. Housing inventory maintained a significant low from January-May 2022 that shortened sale timelines.
June 2022 reached inventory levels not seen since the year before, causing sale timelines to extend again over the summer, steadily climbing to a 50-day average by this fall.
Your Market’s DOM
DOM is a real estate metric standing for days on market. It refers to the average time it takes between listing your house and selling it. The numbers above refer to a national housing market average, but local markets hold the information you need when calculating the DOM to anticipate.
Narrow your reference point to as small a geographical scale as possible. Examine the houses sold and their average sale timelines. Add the number of days each listing was active and divide that sum by the number of properties to find your local market’s current DOM.
Real estate websites like Zillow offer research databases that can help you calculate your market’s DOM under Inventory and Sales information.
Know DOM Influencers
A qualified real estate agent will advise you on determining the appropriate list price for your home. The list price is arguably the most important factor that determines a house’s days on market. If selling your home fast is your main goal, price it beneath its market value. Fair list prices put you in the average sale timeline.
Local market conditions play a major role in determining DOM. If your area is experiencing an economic recession, the DOM will be higher than usual. Too high of a local inventory can also influence a longer sale timeline.
Location can be a positive factor too. If your property is in a highly sought-after city, home prices or inventory levels might not influence potential buyers at all.
The house’s condition also impacts DOM. The DOM can be much longer if it’s in disrepair or severely outdated. The asking price needs to reflect the property’s condition. If you aren’t in a position to accept that price or if the condition is preventing potential buyer interest, you need to consider renovations and upgrades to improve it.
Your realtor’s quality and experience can affect the DOM metric as well. They might not advise you wisely due to a lack of research or understanding of the local market. Inadequate advertising, reluctance to host open houses or failure to network with other realtors and potential buyers can cause your house to sit on the market for a longer period.
Overview of the Real Estate Market
Currently, inventory growth appears to be stalling. This year, there was a decline in new listings, probably in response to the rising mortgage rates deterring home buyers. The Census Bureau reports that new home prices are still rising, but at a lower rate than in previous months.
There are a record amount of new construction homes in progress. New houses under construction aren’t seeing completion as fast as in the past because of supply chain challenges and expensive rises in materials costs. But, experts expect those projects to see faster completion in the upcoming months. There are over a million housing starts under construction right now.
Market analysis shows an anticipated slowdown in the steady rise of housing prices we’ve been seeing. It is still unknown whether house prices will follow standard index predictions if inventory remains this low. Regular indicators like the time of year a house goes on the market should still apply.
If Your House Is Sitting on the Market
You can take action to speed up your house’s sale timeline. In addition, you can change realtors if you feel they’re not holding up their end of the deal to promote your property and facilitate a sale.
You might need to reconsider your listing price. The asking price needs to appropriately consider the home value. Home buyers face a long list of expenses during this process, including home inspection and closing costs, on top of a down payment. Your listing price has to be justifiable based on local market conditions.
You also might need to improve the property’s condition to make a better first impression on potential buyers. For example, investing in enhancing the curb appeal, decluttering, or other developments can make a house more attractive and sell faster.
Avoid letting your listing go stale because that has its own consequences. Nationally, homes sell fastest in the spring. So take a seasonal approach to your home selling strategy if possible.
Future Real Estate Trends
Some experts expect that house prices will decrease in 2023, but mortgage interest rates will increase in tandem with inflation, meaning fewer people will want or qualify for loans. Inflation levels suggest that lenders will have to enforce stricter borrowing terms due to government tapering.
Various outlets also report that real estate websites are experiencing lower traffic, indicating a decline in plans to buy. However, the National Association of Realtors still anticipates technology’s continuing prevalence in the home-buying process, with 97 percent of homebuyers using the internet to aid in their home search.
Many experts predict a growing emphasis on access to amenities influencing the housing market in 2023. Right now, a societal focus on wellness is causing people to look at housing locations through the lens of proximity to amenities like fitness centers, pet services, and walkability to entertainment and dining more than ever before.
Lastly, a foreseen trend is a continuing lack of affordability. Rent and home prices are still far above wages, and there’s no end to that in sight. With a current lack of control over inflation, interest rates, and cost of living indexes, real estate will continue to pose an affordability challenge.
The pandemic threw a wrench in housing market conditions that caused a dip in interest rates, skyrocketed demand, and eventually brought a decline in inventory that still affects real estate markets today.
Calculating the DOM of your local market through available inventory data can tell you the length of time your house might take from listing to sale completion.
You can take action to speed up the average time your house stays on market by working with a qualified agent to set an appropriate listing price, boost your home’s buyer appeal, and set an informed strategy. Market predictions for future trends indicate a slowdown in rising house prices, further mortgage interest rate climbing, and a continuing lack of affordability.
If you want to sell a house fast in Idaho, you’re in luck! We buy houses Nampa residents are looking to sell quickly. Furthermore, if you are interested in selling your house for cash, there are cash home buyers in Boise ready to buy as soon as possible.