The latest May Pro Teck Valuation Services Home Value Forecast analyzed more 200 metros throughout the U.S. to determine how long it takes for a home to close in each market, looking at sold days on market (from listing to close).
Out of all 200 metros, only seven metros are selling in 50 days or less.
The current industry average is approximately 42 days to close a loan and has been dropping even further as of late.
Here are the seven metros that are selling at or under 50 days:
- San Jose–Sunnyvale–Santa Clara, Calif. – 41 days
- San Francisco–Redwood City–South San Francisco, Calif. – 42 days
- Oakland–Hayward–Berkley, Calif. – 45 days
- Denver–Aurora–Lakewood, Colo. – 49 days
- Boulder, Colo. – 49 days
- Dallas–Plano–Irving, Texas – 50 days
- Fort Worth–Arlington, Texas – 50 days
“These numbers represent the average for the entire metro,” said Tom O’Grady, CEO of Pro Teck Valuation Services. “This doesn’t take into account the hot micro-markets inside of these metros, some of which have sold days on market as low as 30.”
O’Grady said the analysis features metros where homes are going under contract fast, often during the first few days on the market.
“In these metros, multiple bids are coming on listing day,” said O’Grady. “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 took it a step further and looked at San Jose alone since it is has the lowest Sold Days on Market.
The chart below shows the average days on market in San Jose since 2007.
Click to enlarge
(Source: Pro Teck)
The report explained that the quicker closing days in San Jose have been the norm for the last few years, with dips to the 50-day range each of the last few years during the second quarter.
Pro Teck noted that this trend in the city isn’t likely to change anytime soon due to the lack of inventory and increasing employment there.