As the housing market continues to trend higher and inventory becomes more scarce, the time it takes for a home to be bought and sold is also shrinking. Technology is clearly contributing to the speed of transactions, but considering the number of things that must be completed before a property can be bought can be over whelming.
According to a recent analysis, homebuyers are now buying their homes 11 days faster than they were in 2018. The period it takes to close on a new purchase transaction, according to this report, has fallen from 74 days in 2017 to just 40 days in 2019.
Also, credit scores have significantly improved over the last few years, which has a corresponding benefit of causing the transaction to close faster. This same report revealed that borrowers with good credit scores (760+) averaged a closing time of just 38 days in 2019. This compares with those borrowers with lower credit scores (-720) taking 45 days.