Days on Market or DOM is a real estate statistic that can be very misleading for both homeowners and home buyers. On the surface, this is just the number of days a particular property has been listed on the multiple listing service (MLS) without being sold.
Sounds simple, right?
Perhaps not. For instance, 60 days on market could sound like a long time in a particular zip code, price range or dwelling type (single family home, condo, etc.). The same 60 days could mean something completely different in a different zip and price range.
For instance, the general statistic for August in zip code 85254 in Scottsdale was 77 single family homes sold and the average Days on Market was 70.
Now, check out what happens when we look at Days on Market when we include price ranges in the 85254 zip code in Scottsdale:
$300-400k - 16 sales and 62 DOM
$400-500k - 31 sales and 45 DOM
$500-600 - 13 sales and 59 DOM
$600-700 - 5 sales 80 DOM
$700-800 - 5 sales 122 DOM
$800-900 - 2 sales 233 DOM
Are you seeing a pattern here? Yes! Price influences how long it takes a home to sell even in the same zip code.
There are many factors other than price that influence Days On Market. Here are just a few:
Use Days on Market to see if homes (in general) are selling faster this year than last year in your city or state but not to see how long it will take to sell YOUR house.
For that, you will need a Realtor who knows how to obtain and interpret the data in your neighborhood and give you a fair assessment of value and selling time.