Real Estate: Homes on Market Taking Much Longer to Sell, in Past Six Months

On average, the length of time required from realPresident and CEO of HouseHunt, Inc. "Our strong
estate listing to contract has increased dramatically ineconomy and consumer demand made record homes
the U.S. in the past six months, according tofor sale possible in 2005 despite destructive hurricanes,
HouseHunt's latest national "Current Market Conditions"rising mortgage interest rates and higher energy costs.
homes for sale activity survey. Seventy-five percentWe're optimistic that a sustainable, more balanced
of respondents said it is now taking more than 30housing market will be the cornerstone of the U.S.
days. Of that figure, 30% said it is taking more than 60economy in 2006."
days.A sampling of individual survey results:
Three months ago, 52% of survey respondents said- Clint Johnson of Rose & Womble and exclusive
the average time on the market required for a homemember agent in Virginia Beach and Norfolk, VA, area:
to sell was more than 30 days on the real estate"During the past few weeks we have seen a
market. Six months ago, only 35% said it was takingsoftening of the market, with fewer multiple home
more than 30 days as buyer frenzy continuedoffers and buyers negotiating for closing cost
unabated.assistance." He noted that the area has seen
"Current Market Conditions" 4th quarter survey alsotremendous growth in prices and in units sold. Median
found:home price is $230,000, up 15-20% in the past year.
Home sales prices remain firm. Currently, 82% say- Rod Sullivan of GMAC Metro Brokers, exclusive
they are getting 95% or more of asking home prices.member agent for Lithonia, GA, reports more sellers
This compares with 80% in the third quarter and 90%than buyers with a good supply of unsold homes.
in the second quarter of 2005.Average time on the market is 90-120 days. "Our
Solid appreciation. One-half of all respondents reportgreatest activity is from first-time buyers. Median home
home price appreciation of 10% or more in the fourthprice is $150,000. Sellers are getting 95-100% of asking
quarter, year-to-year. This compares with 46% in theprices."
third quarter and 42% in the second quarter.- Steve Gaines of CENTURY 21 Landtree and
Multiple offers down. Currently, only 50% ofexclusive member agent in Greenwood, IN, reports
respondents report multiple offers. This is down frommore sellers than buyers and a good supply of unsold
70% in the second and third quarters of this year.homes. "Average time on the market is 90-120 days,"
Buyers-sellers demand nearly equal. A more balancedhe said. Median home price is $175,000.
real estate market between buyers and sellers- Diane Ash of Weichert Realtors and exclusive
demand has emerged in many parts of the country.member agent in Middletown, DE, said lower property
This compares with a 61-39% buyer ratio in the thirdtaxes are attracting buyers from New York, New
quarter.Jersey and Pennsylvania. Median home price is
First-time buyers. Currently at 35%, this percentage$300,000. Average time on the market is 30-60 days.
has stayed about the same for the last six-nine- Tim Ireland of Coldwell Banker Honig-Bell and
months despite price and appreciation spikes on theexclusive member agent in Mokena, IL, said sellers and
East and West coasts and in Florida, Phoenix and Lasbuyers are about 50-50. Average time on the market
Vegas. Greatest first-time buyer activity continues tois 60-90 days. Median price is $261,190 with a good
be in the South and Midwest. Repeat and move-upsupply of unsold homes.
buyer activity remains strong. Investor and- Leah and Neville Bradshaw of Long & Foster Old
second-home demand has slowed.Town/Historic,, exclusive member agents in Lorton, VA,
Inventory of unsold homes growing. Sixty-five percentreported more sellers than buyers and a median home
said the trend is up in local real estate markets.price of $543,000, up 10-15% over last year. Even
Fifty-five percent report a good supply in all pricethough sellers frequently get more than 100% of asking
ranges. Only 38% reported a good supply six monthsprices, they said that first-time buyers are very active.
ago.- Dan Urbach of Prudential California and exclusive
Market Growth. Overwhelmingly, survey respondentsmember agent in Pacific Palisades, CA, said his market
said job and population growth continues to fuelis settling down from a very hot seller's market to a
housing demand in local markets.more balanced market. Median price home is $2 million,
"Our latest random survey findings are consistent withup 15-20% over a year ago. Average time on the
both nationwide housing sales data and forecasts ofmarket is 30-60 days.
top industry economists," said Michael Bearden,