How Long Are Houses on the Market?

The time a house spends on the market, known as “Days on Market” (DOM), indicates how quickly properties sell in a given area. This metric offers insights into market dynamics for both buyers and sellers, informing pricing strategies and negotiation tactics. It helps gauge the overall health and competitiveness of the housing market.

Understanding Market Duration

“Days on Market” (DOM) refers to the number of days a property has been actively listed for sale on the Multiple Listing Service (MLS) before an offer is accepted. This period begins when a property is marked as “active” on the MLS and concludes when the seller accepts an offer, changing the status to “pending” or “under contract.” It is an indicator of a property’s marketability and the broader market’s activity.

The MLS-based DOM is the most commonly accepted standard. This metric is a tool for analyzing how quickly homes are being absorbed by the market, reflecting demand and desirability.

Factors Influencing Market Duration

Several elements influence how long a house remains on the market. Local market conditions play a substantial role, with supply and demand dynamics being primary drivers. In a seller’s market, where demand is high and inventory is low, homes generally sell faster, resulting in a shorter DOM. Conversely, a buyer’s market, characterized by higher supply than demand, typically sees homes linger longer on the market. Seasonal trends also affect market duration, with spring and summer often seeing more activity and quicker sales compared to winter months.

Property characteristics are another determinant of market duration. A home’s location, including the desirability of the neighborhood and quality of school districts, can greatly influence how quickly it sells. The physical condition of the property, whether it is move-in ready or requires significant renovations, also impacts its appeal and time on the market. Features such as size, age, and type of home (e.g., single-family versus condo) also contribute to how long a listing remains active.

The pricing strategy adopted by the seller is a primary factor affecting market duration. A property priced competitively and accurately according to its market value and comparable sales in the area is likely to sell much faster. Overpricing a home can significantly extend its time on the market, potentially leading to a “stigma” where buyers assume there are underlying issues. Effective marketing also contributes to a shorter DOM, encompassing professional photography, a strong online presence, and robust outreach by the real estate agent to potential buyers.

Accessing Market Duration Data

Individuals can access market duration data from several sources. Real estate agents represent the most accurate and detailed source of “time on market” information, as they have direct access to the Multiple Listing Service (MLS). The MLS provides comprehensive data, including specific property histories.

Publicly accessible online real estate portals also provide DOM data for listings. Websites such as Zillow, Redfin, and Realtor.com display the number of days a property has been on their platforms. While convenient, their DOM calculations might differ slightly from the MLS, or their data may not be as current. These platforms can still offer a general indication of market activity for a specific property.

Local real estate boards or associations often publish market reports and statistics that include average or median DOM figures for various regions. When reviewing this data, it is beneficial to look for specific data points such as the average DOM for a particular zip code, neighborhood, or properties within a certain price range to obtain a more precise understanding of local market conditions.

Interpreting Current Market Trends

Understanding market duration data helps both sellers and buyers make informed decisions. A short market duration, indicating that homes are selling quickly, often points to a strong seller’s market. This scenario suggests high buyer demand, limited inventory, and often competitive bidding, where properties may sell at or above the asking price. In such a market, buyers may need to act swiftly and be prepared to make strong offers.

An average market duration suggests a balanced market, where supply and demand are relatively even. Homes are selling at a steady pace, reflecting typical conditions.

Conversely, a long market duration can signal a buyer’s market, where properties take extended periods to sell. This may indicate an oversupply of homes, reduced buyer demand, or issues with specific properties, such as overpricing or condition concerns. Properties that remain on the market for an extended time, often beyond 60-90 days, can become “stale,” leading buyers to question potential problems and potentially resulting in lower offers. Comparing a specific property’s DOM to the local averages and medians for similar homes allows individuals to gauge its performance and potential for negotiation.