Nashville was the most popular market, with an average sales time of 14 days. Seattle was the second fastest to move, with an average of 17 days. Omaha and Salt Lake City averaged 18 days, and Cincinnati, Birmingham, Charlotte, Denver, Las Vegas, Manchester and San Francisco were also among the busiest. After the bidding wars frenzy, the U.S.
housing market is starting to cool down, particularly along the West Coast, as mortgage interest rates rise. That's forcing some sellers to adapt. Several Western markets are cooling faster, and San Jose, California, tops the list, according to a new Redfin analysis based on average sales prices, changes in inventory and other housing data from February to May. Low mortgage rates in recent years have boosted demand in many markets and caused some to overheat, said Redfin's chief economist, Daryl Fairweather.
While 30-year fixed-rate mortgage interest rates were around 3% at the end of December, those rates have risen to nearly 6% as the Federal Reserve raises its benchmark rate to combat rising inflation. The markets that cooled the fastest over the past year, according to Redfin, based on the average sales price, changes in inventory, price drops and other factors. Markets cooled more slowly over the past year, according to Redfin, based on the same factors. In fact, high-priced homes in areas such as Northern California have been hit the hardest, with 30-year mortgage rates approaching 6%, according to Redfin's analysis.
As the market cools, sellers should no longer expect an open day to attract multiple competing offers or bidding wars between 20 and 30% above the selling price, Kowalczuk said. Those days are over. When you prepare to list a home for sale, hire an experienced real estate agent or broker who knows your neighborhood or region to help you determine the right selling price, he said. If your prices are too aggressive, it's going to be the kiss of death.
If a high starting price drives buyers away and the house languishes in the market, buyers who encounter the ad later may see that something is wrong with the property, Kowalczuk said. Although today's market offers less leverage for sellers, you may still get a higher price than before the pandemic, Kowalczuk said. Do you have confidential informational advice? We want to hear from you. Get this in your inbox and learn more about our products and services.
Real estate markets are so red-hot that Credible decided to take a closer look at them and compile a list of the 20 metropolitan areas where homes sell the fastest. Listed homes move so fast in Richmond that a local realtor quoted in the media compared the market to a food delivery truck that sold food in the parking lot and didn't even put its products on store shelves. Because selling a home often means buying another, sellers can seek out a competitive market with many buyers and decide to avoid the hassle.