Why Days on Market is Important in Real Estate?
Understanding local housing market trends is an important whether you are buying or selling a home. One important data in real estate is how many days the property has been on the market, known as days on market or DOM. Along with home prices, days on market is a key metric used to evaluate a real estate market and to find out how the market is doing.
What is days on market?
Days on market, DOM is the measure of time from when a property on the market for sale. Days on market is the number of days that a property has been listed on the local multiple listing services (MLS) until a seller has accepted an offer and signed a contract. It can also be referred to as active days on market, market time, or time on market.
Why DOM matters?
DOM in real estate is important for buyers and sellers, but it is more important for sellers. Homes typically generate the most interest when they’re new to the market. After the first couple of weeks on the market, the phone calls, the foot traffic tend to drop. Once all current buyers have seen your home, you’ll be limited to the smaller population of new buyers entering the market.
How DOM helps a buyer?
If you see a particular home that has been on the market for 120 days, and the average DOM for the homes in surrounding are is 60 days, that tells you that something is wrong. Either the house is priced too high, or there is something wrong with the condition, or both. While DOM can indicate the seller is not realistic in their pricing. At the same time, it can also identify sellers who haven’t received offers and who may be open to a dramatically lower offer. Because the last thing sellers want is for their house to stays on the market.
What sellers need to know about DOM?
As far as sellers are concerned, DOM really comes in handy when it comes to pricing a home. When DOM number is low, they know that they can be more aggressive with their pricing because buyers are grabbing up properties quickly. If a seller prices their home in an area where the DOM is high, they have to be more careful with their pricing.
Conclusion
As you can see, days on market means a lot to buyers and sellers. Days on market is one of the key market indicator that you need to know about whether you’re planning on buying or selling a home.
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Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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