The nation might average closing times of 50-plus, but in seven U.S. markets, homebuyers enjoy a faster-than-typical closing process, according to the recent Home Value Forecast released by Pro Teck Services [1] on Friday.
The Forecast looked at more than 200 metro markets across the country, and just seven had closing times at or under the 50-day mark. The market with the fastest time-to-close? San Jose, California.
At just 41 days, San Jose homebuyers enjoyed the quickest closing process in the nation last month. But fast closing times are nothing new for the metro, according to Pro Teck, and with tight inventory, it may remain that way for some time.
“Quicker closing days in San Jose, California, have been the norm for the last few years, with dips to the 50-day range each of the last few years during Q2,” Pro Teck reported. “With the lack of inventory and increasing employment in San Jose, we don’t see these market dynamics changing anytime soon.”
The San Francisco-Redwood-City-South San Francisco metro came in as the No. 2 fastest-closing city with a 42-day time-to-close, followed by Oakland-Hayward-Berkeley, California (45 days); Denver-Aurora-Lakewood, Colorado (49 days); Boulder, Colorado (49 days); Dallas-Plano-Irving, Texas (50 days); and Fort Worth-Arlington, Texas (50 days).
The key to closing this quickly? Pro Teck says it's fast bidders.
“In these markets, multiple bids are coming on listing day,” Pro Teck reported. “To be competitive, winning bidders are pre-approved, have no contingencies and often have larger down payments—all leading to less risk and a quicker close with the banks.”
Pro Teck’s forecast also ranked the month’s strongest and weakest 10 metros in the country. The majority of the top 10 were located in the West, with Bellingham, Washington, taking the No. 1 spot. Rounding out the list was Boise City, Idaho; Fresno, California; Modesto, California; Mount Vernon-Anacortes, Washington; Olympia-Turnwater, Washington; Sacramento-Roseville-Arden-Arcade, California; San Diego-Carlsbad, California; Seattle-Bellevue-Everett, Washington; and Stockton-Lodi, California.
At the bottom of the list was Huntsville, Alabama, though Pro Teck notes, “while at the bottom of our ranking this month, the majority of these metros are in much better shape than our bottom metros from years past.” Also at the bottom were Santa Fe, New Mexico; Miami-Miami Beach-Kendall, Florida; Shreveport-Bossier City, Louisiana; Chicago-Naperville-Arlington Heights, Illinois; Lake County-Kenosha County, Illinois-Wisconsin; Milwaukee-Waukesha-West Allis, Wisconsin; Virginia Beach-Norfolk-Newport News, Virginia-North Carolina; Atlantic City-Hammonton, New Jersey; and Rockford, Illinois.
View the full forecast at ProTeckServices.com. [2]