Its not uncommon for homes in certain markets to stay on the market for a day or less. Sometimes, homes can go pending within hours after hitting the MLS. However, what is typical? And, why do some homes sit on the market for months? The biggest factors affecting the speed of sales in a market are macroeconomic. The economy, interests rates, etc. overall dictate how strong the buyer pool will be. The more specific factors are location of the home, quality of the home, and the listing price. Newer homes, in “hot” areas, priced well, will typically fly off the market, but only if the macroeconomic factors are sufficient. Obviously, this is not a typical for the average listing. Local and national economic factors are cyclical, and the average home is not of perfect HGTV quality. Even if it is, most sellers will want to price high, so the average time on the market is not hours, or even days. It is weeks
Nationally, in early 2017, the average days on market (DOM) were 45. In January 2018, this number dropped to 41. And, for February, we saw an even greater decline, with the average dropping to 37 days. This equates to almost 18% fewer days on the market, which is a massive drop. In Michigan, we are experiencing a hotter market that is outpacing the national averages. In Oakland County, DOM dropped from 40 in early 2017, to 32 in February of 2018. Although Oakland County saw a similar percentage drop, the average DOM is about 14% less than the national average.
Part of the reason that Michigan is beating the national average is that we have very low inventory levels. There are 2.8 and 3.4 months of inventory respectively in Oakland County and nationwide. In addition, the metro Detroit area saw the largest increase in population in 2017 in over 15 years.
It is a great time to sell your home in Southeast Michigan. Prices are high, inventory is low, and mortgage rates are going to move up significantly later this year. To talk to me about how I can assist you with getting you the best price for your house, call me at (248) 416-4652 or EMAIL ME now.
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