If there’s a home on the market stuffed with to-die-for features, it’s probably not going to last long, according to the latest Nationwide Health of Housing Markets (HoHM) report. What’s precipitating the blink-and-you’ll-miss-it market? Heavy demand and a rock-bottom level of for-sale homes, the report says.
“As we head into spring and the traditional season when sales heat up, buyers will find that desirable homes won't be on the market for long," said David Berson, SVP and Chief Economist at Nationwide. “Today, the average home is on the market almost half the length of time that it was six years ago.”
That news, of course, is a sweet elixir for would-be sellers. Just how sweet? In 2017, the typical home sat on the market—meaning from listing to inking a contract—for 67 days, HoHM data shows. Snip that in half for the nation’s hottest markets, like Denver or Colorado Springs, where the average abode was on the market for some 33 to 34 days, Nationwide reports. Other sizzling locales: San Francisco-Redwood City, California (35 days); San Diego-Carlsbad, California (37 days); Portland, Oregon (38 days); Dallas-Plano-Irving, Texas (40 days); and Kansas City (41 days).
Despite the challenges confronting buyers, Berson’s outlook on the U.S. housing market remains rosy.
“Household formations have offset much of the negative price impacts,” he said. “The labor market is strong, and wages are increasing. Affordability remains a concern, especially for entry-level homebuyers in today's low-inventory conditions, but most indicators point to healthy, sustainable local markets with only a few extreme exceptions.”
The top 10, in order, are Johnstown, Pennsylvania; Carbondale-Marion, Illinois; Springfield, Illinois; Farmington, New Mexico; New Bern, North Carolina; Chambersburg-Waynesboro, Pennsylvania; Pittsburgh, Pennsylvania; Auburn-Opelika, Alabama; Harrisburg-Carlisle, Pennsylvania; and, Erie, Pennsylvania.
Delinquency rates in Florida and along the Texas Gulf Coast surged in fourth-quarter 2017, presumably the result of hurricanes that ravaged both areas.
In order, the bottom-10 markets include Victoria, Texas; Rapid City, South Dakota; Sherman-Denison, Texas; Beaumont-Port Arthur, Texas; Anchorage, Alaska; Houston-Sugar Land, Texas; Pueblo, Colorado; Brunswick, Georgia; Rochester, Minnesota; and, Coeur d’Alene, Idaho.