After years of aggressive competition and speedy home sales, the Fed’s most recent rate hike has buyers pumping the brakes on home purchases, forcing some sellers to drop their asking price and leaving available listings on the market for slightly longer than during pandemic peaks.
Earlier this year, homes listed on the market sold in an average of just 21 days on the frontlines of heated bidding wars. Now, homes are staying on the market for an average of 31 days as buyers respond to fast-rising mortgage rates and prepare for a potential recession in the year ahead, but some popular markets are still seeing quick and frequent home sales. In Manchester, New Hampshire, available homes are lasting a meager 8.5 days before closing, and warmer areas like Raleigh are seeing similarly speedy sales, says Realtor.com.
Low inventory has been an issue in the market, says Matt Fowler, executive director of Triangle MLS. He says more area houses sold in 2021 than in any year before—and that pace has kept up this year so far.
“Think of it as a retail store. It’s not like there’s not stuff on the shelves. The shelves are full, and they’re turning so fast that it’s hard to keep them stocked,” he explains. “So there’s less inventory visible, but you can [still] find and buy a house.”
Prior to the pandemic in June 2019, the Raleigh area had 10.8 months of housing inventory to work through. Fowler says the number now sits at 3.3 months.
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