What Does ‘Days on Market' Mean and Why Does It Matter to Home Buyers?

Finding the perfect home is like finding a freshly baked loaf of bread in the bakery: timing is essential for freshness and appeal. If a listing doesn't attract attention soon after becoming available, it can quickly become "stale", causing buyers to question its value and leading them away from potential real estate deals.

Keeping track of the days a home has been on the market is important for a number of reasons:

In the words of the National Association of Realtors, DOM is the number of days between the day on which a property becomes available for sale on local brokers' multiple-listing services (MLSs) and the date on which the seller has signed a contract for the sale of the property.

DOM can also be referred to as “time on market”, and is basically a measure of how long a house takes to sell. It is also used as a key metric by buyers and real estate agents to see which homes are fresh to the real estate market.

• DOM as a search filter 

Search filters such as DOM can be used by buyers and agents to identify long-listed properties. 

• The DOM is an indication of how hot the market is.

The number of days a property spends on the market can be a good indicator of whether the market is hot or not. In a seller's market, fewer days on market occur when there are more buyers than homes for sale.

• Higher DOM = “Is there something wrong with the house?”

Homeowners expect fast sales when their property is listed on the market, as initial interest in a newly-listed residence typically drives demand. A short window between listing and sale could mean either that there’s high competition for the house or its price was lower than expected but still attractive to buyers.

Having a house on the market for an extended period of time can raise questions and concerns from both buyers and sellers. Staging, pricing factors, or lack of desirability are possible underlying causes - yet it could also be seen as an indication that the homeowner is unmotivated to part with their property.

• Higher DOM = a potential bargain

A house with many days on the market can be a prime opportunity for bargain-hunters! As it's common to have multiple listings in an area, understanding why this home has remained unsold so long may give you more bargaining power when making your offer.
Talk to your agent about how long its been available and any potential negotiation points that could get you closer to securing this property at a great price.

Homebuyers have the opportunity to find a great deal in certain markets when listings are taken down and relisted with new pricing or if an agent switch happens. This resets the DOM counter, giving buyers the impression that it's 'brand-new' on the market - presenting a fresh chance at finding their dream home for less.

Tracking the total time a property has been on the market is essential for buyers to be informed about its true history. To get an accurate picture of timelines, it's important to collaborate with your agent and gain insight into all data points that contribute to "Cumulative Days on Market" (CDOM) – including individual days listed as well as any past listings or price changes.

When it comes to buying a home, DOM numbers can provide important guidance. However, they shouldn't be the only focus - there are multiple variables that could contribute to high figures and a higher-DOM property doesn't necessarily mean it's not an excellent option for potential buyers.

Sellers should remain vigilant to ensure that Days on Market (DOM) does not rise too high and diminish buyer enthusiasm. Without a lively competition, it can be difficult to achieve desired pricing outcomes for the seller.

Are you thinking of selling your home or buying a home? Our team of expert real estate agents here at Santa Sells Houses are ready to help you. Reach us thru (519) 914-2679 or send us an email at Info@SantaSellsHouses.Com.