The housing market has defied all predictions. Here’s what the data reveals.
What are days on the market?
The term “days on the market” refers to the number of days between the day a house is listed on the market and the day it is sold.
When a seller lists his home for sale on the market, the expectation usually is that the property will sell quickly. However, finding a balance is important. If the number of days between the listing and the sale are few, it could indicate a high-demand market or that the property was underpriced and a good value. The more days on the market there are, the more likely it is that the property is considered high risk, overpriced, or otherwise not as desirable to homebuyers.
The days on the market can be a factor in the price that the buyer is willing to pay. If an area has a large number of houses listed for sale, it is likely those houses will take longer to sell. This may mean home sellers need to be less aggressive in their listing price to obtain a faster sale. If a home is on the market longer than other properties in the area, this can become a negotiating tool for the property buyer.
In a seller’s market, where there are fewer homes listed for sale than there are buyers, days on the market are fewer. This length of time is often used to describe just how hot the market is in a particular area.
Days on the market example
A home is listed for sale in a highly competitive market where there are a lot of buyers. The house sells two weeks later, making days on the market 14 days.
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