Why Homes Are Selling in Record Time: A 2024 Market Analysis

Homes in the United States are selling at the fastest pace in over a decade, with intense buyer competition and a severe shortage of supply driving the market. According to recent data, the typical home found a buyer in just 41 days in June, a record speed. Nearly 26% of properties sold within two weeks, and more than one in four sold for above the asking price. This trend is fueled by a combination of historically low mortgage rates, steady job growth, and a significant demographic push from millennials entering the housing market. For buyers, this means preparing for a competitive process; for sellers, it highlights a prime opportunity.

What Is Causing Such a Fast-Paced Housing Market?

The current market dynamics result from a rare convergence of economic factors. On the demand side, mortgage rates remaining near historic lows have increased purchasing power. Simultaneously, a large cohort of millennials is reaching peak home-buying age, spurred by rising rents and stable employment. On the supply side, the number of homes available for sale has dropped sharply. The national months of supply—a key indicator measuring how long it would take to sell all current listings at the present sales pace—fell to 2.8 months. A balanced market typically has 6-7 months of supply; anything lower indicates a strong seller's market. This severe imbalance, where demand vastly outstrips supply, is the primary engine behind rapid sales and escalating prices.

Which US Cities Are the Most Competitive?

While the national market is hot, competition is most intense in specific metropolitan areas. Based on market analysis, the following cities are seeing homes go under contract exceptionally quickly:

• Denver, CO: Leading the nation, half of all homes sold in approximately six days.
• Seattle, WA: The typical home found a buyer in only eight days.
• Portland, OR: Close behind Seattle, with a median of eight days on market. These markets exemplify the national trend, where a strong local economy, population growth, and limited housing inventory create hyper-competitive conditions for buyers.

Could the Market Competition Ease Soon?

The outlook suggests that major supply constraints will continue to influence the market in the near term. However, some factors may provide slight relief for buyers. Recently, mortgage rates have ticked up from their absolute lows, which may slightly cool demand. Additionally, persistently high prices are causing some potential buyers to delay their search and renew apartment leases, potentially reducing the number of competing offers. Despite this, the core issue—a lack of new listings—persists. Until more homeowners decide to sell, creating a better balance between supply and demand, the market will likely remain competitive.

For buyers in this market, being prepared is critical. This includes getting pre-approved for a mortgage, being ready to move quickly, and understanding that offers may need to be aggressive. For sellers, it underscores the value of pricing a home correctly and being prepared for a potentially swift sale. Based on our experience assessment, while the peak frenzy may moderate, strong price appreciation is expected to continue through the end of the year.