Study: Longer Home Tenure Means 17K Fewer Sales
Americans are staying put in their homes longer, contributing to the limited number of homes for sale. Title company, First American, has put a number on the likely size of the loss for the current housing market: The length of the average homeowner’s tenure has resulted in a loss of more than 17,000 potential home sales.
The statistic appears in First American’s just-released Potential Home Sales Model, reflecting May data.
The average homeowner’s tenure has jumped by nearly 4% compared to a year ago and by 0.4% compared to April. The monthly gain is the largest since August 2020, First American reports.
“Since existing homeowners supply the majority of the homes for sale, and increasing tenure length indicates homeowners are not selling, the housing market faces an ongoing supply shortage,” said Mark Fleming, First American’s chief economist.
Prior to the housing market downfall in 2007, the average length of time a homeowner lived in their home was about 5 years. During the aftermath of the housing market crisis between 2008 and 2016, the average homeowner tenure length grew to about 8 years. As of May this year, the average homeowner tenure length has reached 10.6 years, a historic high, First American reports.
Source: National Association of Realtors, Realtor Magazine>
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