The average Days-on-Market for New Homes is about 65 days higher for new homes than for pre-owned homes, according to a HomesUSA.com sales analysis of homes listed in the Dallas/Fort Worth, Houston, Austin and San Antonio Multiple Listing Services (MLS). This should not be interpreted negatively, it is a natural consequence of listing new homes while under construction, often in the foundation or framing stage. Since most buyers aren’t looking to move immediately, early market exposure allows buyers an opportunity for some customization and expands the inventory of available homes, an important factor for agents and buyers in a tight housing market.
Another important contributing factor is the average new home sales price is substantially higher than for pre-owned homes.
Conclusion: Days-on-market for new homes under construction should not be viewed the same way as for pre-owned homes.
Ben Caballero is the Wall Street Journal and REAL Trends’ #1 ranked real estate professional in the USA in two individual categories: (1) number of homes sold, and (2) transaction (dollar) volume. Ben has been the #1 agent in the nation in these categories every year since 2012. His projected 2016 sales production is $1.375 billion, up 36% YoY, from 2491 units in 2015 to more than 3400 in 2016. He was named Most Innovative Real Estate Agent by Inman News in 2013. In 2014 he received the Pinnacle Award from Keller Williams. He is the CEO of HomesUSA.com, Inc., co-founder of HomesUSAAlliance.com, a lifelong REALTOR® and former homebuilder. Ben has been a real estate broker since age 21. Ben credits his #1 ranking to HomesUSA.com’s platform for homebuilders.