The National Association of Realtors® (NAR) and Ellie Mae, a software company that processes almost a quarter of the United States’ mortgage applications, report the average time it takes for a home to go from first day on the market to the closing table is 73 days.
Forty-eight percent of homes sold in March 2017 were on the market for less than a month, according to NAR. The average for all sold properties was 34 days. That amount of time represents a significant drop from an average of 47 days a year ago. Non-distressed homes spent a median of 32 days on the market, which represents the shortest amount of time since NAR began tracking the data in May 2011.
With solid buyer demand supporting the shorter lengths of time on the market, home sale prices have continued to increase. The median existing-home sale price for all housing types was $236,400 in March, up 6.8 percent from March 2016.
“Last month’s swift price gains and the remarkably short time a home was on the market are directly the result of the homebuilding industry’s struggle to meet the dire need for more new homes,” says NAR Chief Economist Lawrence Yun. “A growing pool of all types of buyers is competing for the lackluster amount of existing homes on the market. Until we see significant and sustained multi-month increases in housing starts, prices will continue to far outpace incomes and put pressure on those trying to buy.”
The average time to close on all home loan types decreased to 43 days in March 2017, representing the swiftest pace since February 2015, according to Ellie Mae’s Origination Insight Report. A year ago, the average closing time was 46 days. Loans to purchase a home took 43 days to close in March, down from 45 month-to-month. Refinance loans took 43 days to close in March 2017, down from 47 days month-to-month.
President and CEO Jonathan Corr attributed the decrease in closing times to Ellie Mae lenders who are automating more mortgage processes “to improve efficiency, quality, and compliance.”