Passing through the fourth quarter, both market times and the frequency of price reductions are rising but the across the various property types, the best listings continue to sell quickly—frequently for full or even over-asking price.
Market Times: DOM went from roughly a 25-day average in the spring to 35 days in late summer and 45 days in the fall. By November, market times averaged nearly 60 days for homes that were under contract. As of November 30th, the average DOM for active listings was up to 104 days. Expect market times to climb through the next four months.
Price Reductions: The percentage of under-contract properties that needed price reductions prior to selling has tripled from around 10% in the spring to 30% by November. Expect to see the frequency of price reductions to jump as sellers attempt to land late season deals.
High Demand for Move-in-Ready: Buyers are increasingly selective in their search for move-in-ready homes. The b est listings continue to sell quickly and for full price. One third of November new pendings were under contract in 10 days or less. Twenty-two percent of November sales were at or above full price. Buyers are becoming increasingly selective—condition matters. Average and below-average listings that need work will linger and take a hit on price.
