When it comes to selling your home, one of the biggest questions sellers have is: “Do open houses still work?”
With so many digital tools available, from virtual tours to high-resolution photos, it might seem like open houses are a thing of the past. But in 2024, we’re seeing a comeback. If you’re thinking of selling your home, here’s why open houses might still be one of your best strategies—especially with buyer demand and seller activity on the rise.
Open Houses Making a Comeback
According to the latest Zillow Consumer Housing Trends Report, 65% of sellers in 2024 hosted between 1-3 open houses, up from 49% in 2018 and 44% in 2021. In fact, the median seller now hosts two open houses, up from just one in prior years. This trend signals that buyers are still craving the in-person experience of walking through a home before making a decision.
But why the shift? In 2021-2022, properties were selling so quickly that open houses slowed. Now that the market has settled a bit, home sellers need a comprehensive strategy to attract buyers.
Open houses allow potential buyers to tour the property without pressure. This is especially helpful for buyers who have not yet signed a buyer broker agreement, which is a new requirement in the industry. Plus, open houses can create a sense of urgency. When potential buyers see other interested parties walking through the property, it taps into their competitive nature.
Buyer Demand on the Rise
Adding fuel to the open house resurgence is the fact that buyer demand has started to pick up in recent weeks. September 2024 marked the first time in nine months that pending home sales didn’t decline, signaling a turning point in the market. Mortgage rates have dropped (link to this blog, if published) to their lowest levels in two years, which has made homeownership more accessible for buyers. For instance, the average 30-year mortgage rate recently fell to 6.08%, reducing monthly payments for the typical buyer by 5.9% compared to last year.
More home tours are happening as well. Redfin’s Homebuyer Demand Index, which tracks home tours and related activities, rose by 9% month-over-month in September 2024, reaching its highest level since April. This increase in demand is making open houses more valuable, providing the in-person touch that buyers need to solidify their decisions.
More Sellers Are Listing Homes
Not only were buyers more active in September, but sellers are stepping up as well. Newly listed homes increased by 11.6% in September 2024 compared to the previous year, marking the highest level of seller activity since 2021. In addition, total inventory levels grew by 34% year-over-year, making it the 11th consecutive month of growth. This rise in listings is driven by falling mortgage rates, which have encouraged more homeowners to sell their homes .
With more homes on the market, buyers have a wider range of options. However, this also means more competition for sellers. Hosting an open house can help your property stand out in a crowded market. It allows buyers to experience the home firsthand, which can be a deciding factor when they’re comparing multiple listings.
The Power of First Impressions
One key reason open houses are so effective is the power of first impressions. Of course, digital tools are still essential to catch the attention of those searching online. High-resolution photography, interactive floor plans, and virtual tours provide a comprehensive digital experience for buyers.
Combining these tools with an open house gives buyers the best of both worlds. They can browse online, then come experience the home in person, creating a deeper connection that often leads to faster sales.
If you’re planning to sell, hosting at least one open house is one part of an effective marketing strategy. With more buyers hitting the market in 2024, and sellers listing homes at the highest rate in three years, getting as many eyes on the property as possible is critical. Open houses allow you to showcase your home to engaged, motivated buyers who are ready to take the next step.