When selling your home, one of the most common questions sellers ask is: “Are open houses still effective?” With so many digital options available today, like virtual tours and high-quality photos, it might seem like open houses are outdated. However, in 2024, they’re making a strong comeback! If you’re considering selling your home, here’s why hosting an open house could be one of your best tactics, especially with increasing buyer interest and seller activity.
Open Houses Are Making a Comeback
Recent data from the Zillow Consumer Housing Trends Report reveals that 65% of sellers in 2024 hosted 1 to 3 open houses, a significant increase from 49% in 2018 and 44% in 2021. The typical seller now hosts two open houses, compared to just one in previous years. This trend shows that buyers still value the experience of walking through a home in person before making a decision.
Why this change? During 2021-2022, homes were selling so quickly that open houses became less common. Now that the market has stabilized, sellers need a solid strategy to attract buyers. Open houses allow prospective buyers to explore the property without pressure, which is especially helpful for those who haven’t yet signed a buyer broker agreement, a new industry requirement. Additionally, open houses can create a sense of urgency; when buyers see others interested in the property, it stirs their competitive instincts.
Rising Buyer Demand
The revival of open houses is also fueled by a recent uptick in buyer demand. In September 2024, pending home sales didn’t decline for the first time in nine months, indicating a market shift. Mortgage rates have dropped, reaching their lowest point in two years, making homeownership more attainable for buyers. For example, the average 30-year mortgage rate recently fell to 6.08%, lowering monthly payments by 5.9% compared to last year.
More home tours are taking place too. Redfin’s Homebuyer Demand Index, which tracks home tours and related activities, showed a 9% month-over-month increase in September 2024, the highest level since April. This surge in demand enhances the value of open houses, giving buyers the in-person experience they need to make confident decisions.
More Sellers Are Listing Homes
Along with increased buyer activity, sellers are stepping up their game. New home listings rose by 11.6% in September 2024 compared to the previous year, marking the highest seller activity since 2021. Total inventory has also grown by 34% year-over-year, continuing a trend for the 11th month in a row. Falling mortgage rates are encouraging more homeowners to sell, resulting in a larger selection for buyers. However, this also means more competition for sellers. Hosting an open house can help your property stand out in a crowded market, allowing buyers to experience the home firsthand, which can be crucial when they’re comparing multiple options.
The Impact of First Impressions
One major reason open houses are effective is the significance of first impressions. While digital tools are essential for attracting online searches, such as high-resolution photos, interactive floor plans, and virtual tours, combining these with an open house offers buyers the best of both worlds. They can browse online and then visit the home in person, creating a stronger connection that often leads to quicker sales.
If you’re planning to sell, hosting at least one open house is an important part of an effective marketing plan. With more buyers entering the market in 2024 and sellers listing homes at the highest rate in three years, it’s crucial to attract as many potential buyers as possible. Open houses provide a platform to showcase your home to engaged and motivated buyers ready to take the next step.
