As a home seller, you might find yourself asking, “Do open houses still work?” With a wealth of digital marketing tools at our fingertips—think virtual tours and stunning photography—it may seem like open houses are fading into the background. However, as we head into 2025, they’re making a notable comeback. If you’re considering selling your home, here’s why open houses could be one of your most effective strategies, particularly in a market where buyer demand and seller activity are on the rise.
The Return of Open Houses
According to the latest Zillow Consumer Housing Trends Report, 65% of sellers in 2024 hosted 1 to 3 open houses, a significant increase from 49% in 2018 and 44% in 2021. In fact, the median number of open houses hosted by sellers has risen to two, compared to just one in previous years. This trend suggests that buyers are eager to experience homes in person before making a commitment.
So, what’s driving this shift? During the height of the market in 2021-2022, properties sold so quickly that open houses took a backseat. Now that the market has stabilized, home sellers need a comprehensive approach to attract buyers. Open houses provide a pressure-free opportunity for potential buyers to explore a property. This is particularly beneficial for those who haven’t yet signed a buyer broker agreement—a new industry requirement. Moreover, open houses can create a sense of urgency. When prospective buyers see others expressing interest, it can spark their competitive instincts.
Increasing Buyer Demand
The revival of open houses is also fueled by a noticeable uptick in buyer demand. In September 2024, pending home sales remained steady for the first time in nine months, indicating a potential market shift. With mortgage rates dropping to their lowest levels in two years, homeownership is becoming more attainable for many. The average 30-year mortgage rate recently fell to 6.08%, which translates to a 5.9% reduction in monthly payments compared to last year.
Moreover, home tours are on the rise. Redfin’s Homebuyer Demand Index showed a 9% increase in home tours month-over-month in September 2024, reaching its highest point since April. This growing demand enhances the value of open houses, offering the in-person experience buyers need to finalize their decisions.
More Homes Hitting the Market
Not only are buyers becoming more active, but sellers are responding as well. Newly listed homes surged by 11.6% in September 2024 compared to the previous year, marking the highest level of seller activity since 2021. Total inventory levels also grew by 34% year-over-year, marking the 11th consecutive month of inventory growth. This increase is largely due to declining mortgage rates, which have motivated more homeowners to sell.
With more properties on the market, buyers now have a broader selection. However, this also means increased competition for sellers. An open house can help your property shine in a crowded marketplace, allowing buyers to experience the home firsthand—often a crucial factor when they’re evaluating multiple options.
The Impact of First Impressions
One of the main reasons open houses are so effective is the significance of first impressions. While digital tools remain essential for capturing the interest of online shoppers—such as high-resolution photos, interactive floor plans, and virtual tours—combining these with an open house creates a powerful marketing strategy. Buyers can first explore online and then visit in person, fostering a deeper connection that frequently leads to quicker sales.
If you’re gearing up to sell your home, hosting at least one open house should be a vital part of your marketing plan. With more buyers entering the market and sellers listing homes at the highest rate in three years, it’s crucial to maximize visibility. Open houses provide an opportunity to showcase your home to engaged, motivated buyers ready to take the next step.
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Thanks for reading!
Brandon Yopp