Home Sales Accelerating
Another 'sign' the housing market is improving: homes are selling faster, indicating increased demand, which could fuel more construction and housing starts in the months to come.
Homes put on the market are selling nearly 30 percent faster than a year ago, according to the National Association of Realtors, continuing the perception that the housing market is improving.
The median time a home was listed on the market fell 29.6 percent from a year ago to 69 days in July, the NAR said. One-third of the houses bought in July had been on the market for less than a month, while one in five had been listed for at least six months.
The data includes short sales that typically take three months or longer to sell. Excluding short sales, the median time on market for traditional sellers was between six to seven weeks.
''As inventory has tightened homes have been selling more quickly,'' NAR chief economist Lawrence Yun told Reuters. ''A notable shortening of time on the market began this spring, and this has created a general balance between home buyers and sellers in much of the country.''
The median selling time was four weeks during the housing boom in 2004 and 2005, Yun said, when housing inventories averaged a 4.3-month supply. During the recession, non-distressed sellers peaked at 10 weeks on the market in 2009.
''This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren't often languish on the market,'' said Yun.