August 2024

Days on Market—the clock is ticking

MonthCountry/MSAZillow Median Days to Pending
2024-04-01Atlanta, GA19
2024-04-01Austin, TX34
2024-04-01Boston, MA7
2024-04-01Charlotte, NC11
2024-04-01Chicago, IL7
2024-04-01Dallas, TX16
2024-04-01Denver, CO8
2024-04-01Detroit, MI8
2024-04-01Houston, TX22
2024-04-01Los Angeles, CA13
2024-04-01Miami, FL36
2024-04-01New York, NY23
2024-04-01Philadelphia, PA8
2024-04-01Phoenix, AZ21
2024-04-01San Diego, CA10
2024-04-01San Francisco, CA12
2024-04-01Seattle, WA6
2024-04-01Tampa, FL25
2024-04-01United States14
2024-03-01United States20
2024-02-01United States25
2024-01-01United States27
2023-12-01United States22
2023-11-01United States17
2023-10-01United States15
2023-09-01United States13
2023-08-01United States12
2023-07-01United States11
2023-06-01United States10
2023-05-01United States11
2023-04-01United States13
2023-03-01United States20
2023-02-01United States26
2023-01-01United States28
2022-12-01United States24
2022-11-01United States19
2022-10-01United States17
2022-09-01United States15
2022-08-01United States12
2022-07-01United States9
2022-06-01United States7
2022-05-01United States6
2022-04-01United States6
2022-03-01United States7
2022-02-01United States10
2022-01-01United States11
2021-12-01United States11
2021-11-01United States10
2021-10-01United States10
2021-09-01United States9
2021-08-01United States8
2021-07-01United States7
2021-06-01United States7
2021-05-01United States7
2021-04-01United States8
2021-03-01United States11
2021-02-01United States14
2021-01-01United States16
2020-12-01United States14
2020-11-01United States13
2020-10-01United States13
2020-09-01United States14
2020-08-01United States14
2020-07-01United States16
2020-06-01United States19
2020-05-01United States18
2020-04-01United States19
2020-03-01United States26
2020-02-01United States36
2020-01-01United States40
2019-12-01United States36
2019-11-01United States31
2019-10-01United States28
2019-09-01United States26
2019-08-01United States24
2019-07-01United States21
2019-06-01United States20
2019-05-01United States20
2019-04-01United States23
2019-03-01United States33
2019-02-01United States41
2019-01-01United States44

As the graph above shows, the national median number of Days on Market is roughly 14 days. (The mean—or average—number of days is about 43, but this number is skewed by listings that take years to sell, so the median is a more accurate representation of the current time frame.) Considering how high home prices and mortgage rates are right now, this unusually short time frame is an anomaly caused by the current shortage of home inventory.

This situation has created a unique moment in real estate that is a hurdle for some and an opportunity for others.

Let’s take a look at the reality behind the data.

What Days on Market really means

As you probably know, in real estate, Days on Market is the number of days a property is listed for sale before it’s sold or taken off the market. Specifically, the range starts with the day a property’s status changes to “active” on an MLS and ends when the property’s status changes to “under contract” (sometimes called “pending”).

The current situation

Of course, the current phenomenon of an extremely brief median Days on Market is due to the inventory shortage. The shortage is caused by the number of homeowners unwilling to move because they’re locked in at sub-5% and sub-4% mortgage rates. Even with mortgage rates showing signs of lowering from their 2023 peak, many homeowners would be looking at a monthly mortgage payment that could be double their current payment if they buy a home of comparable value.

What this means for sellers

This is, undeniably, a sellers’ market. A typical seller in this market is likely to field multiple offers for their home in a very brief time span. One of the advantages of knowing this ahead of time is that it gives sellers the confidence to set their home price higher than they might in a buyers’ market. Sellers should always study the comps in their neighborhood, of course. If they’ve priced it too high, they can always drop the price after two weeks without any offers—but if they price it too low, they may be leaving money on the table and not know it unless a bidding war makes it apparent.

What this means for buyers

Buyers in this market need to put on their game face and get all their ducks in a row. They need to know exactly what they’re looking for, exactly how much they can afford, and be prepared to take decisive action quickly. This is where you as their real estate agent come in. Particularly for first-time homebuyers, research and preparation are key. Walk them through a dry run of the entire process so there are no surprises. Review their must-haves and dealbreakers to help them refine their search. Encourage them to get prequalified or preapproved. Make it clear that—while time is of the essence in this market—this is likely the biggest purchase of their lives up to this point, and they should be sure they’re making the right decision before they invest their hard-earned money in a property.

While this condensed time frame can be stressful, some buyers may enjoy a speedier process that gets them across the finish line sooner.

On the horizon

The key to a healthier span for Days on Market depends on an increase in inventory—enough supply to meet the demand. The three key factors to that increase are:

1) New home construction — According to the National Association of Home Builders (NAHB), single-family housing starts are on course to increase 4.7% nationwide this year and another 4.2% in 2025, reaching a pace of 1.3 million units.Footnote2

2) Lower mortgage rates — Lower rates will encourage homeowners to sell their current home and take advantage of the sharp increase in home prices since the pandemic. Though the Fed has promised to reduce interest rates at some point this year,Footnote3 rates have remained mostly stagnant for the first half of 2024. If rates do drop later in the year, and new home construction completions continue to rise, Days on Market will rise again, but gradually.

3) A change in the agent commission structure — As part of ongoing litigation, the standard 6% commission for real estate agents may cease to be the norm.Footnote4 Homebuyers and sellers have always been able to negotiate commissions with agents to get the best deal, but this was not common practice. Now it likely will be. Some economists predict this could reduce agent commissions by as much as 30%.Footnote4 Lower commissions can translate into savings for sellers that may incentivize some homeowners to put their homes up for sale.

People will always need to buy homes and people will always need to sell them. That will never change. This moment, while peculiar in some ways, has come before and will come again. The market will never be ideal for everyone. There will always be pros and cons. Advantages and disadvantages. The important thing is to prepare and inform clients about the context and the variables so they can best take advantage of current conditions.

1 Zillow Housing Data. Data dates: January 2019 to April 2024. Data Pulled: 5/27/2024.


2 “New-Home Construction Is Expected to Grow in 2024.” Written by Melissa Dittmann Tracey. Published February 29, 2024. Accessed April 2024.


3 “Mortgage Rates Forecast For 2024: When Will Rates Finally Come Down?” Written by Robin Rothstein. Updated January 9, 2024. Accessed January 2024.


4 “Powerful Realtor Group Agrees to Slash Commissions to Settle Lawsuits.” Written by Deborah Kamin. Published March 15, 2024. Accessed March 2024.


07/2024 | MAP6738635