The "days on market" aspect of real estate has come to the fore recently as COMING SOON listings and PRIVATE LISTINGS have addressed this aspect of valuation proactively, removing the accrual of these days while in pre-market or test mode. I have always felt Days On Market was a terribly unreliable datapoint, almost akin to all averages that offer generalized insight of little value to anyone, and here is why:
- Every listing's trajectory is different. Should a property accrue days on market if a seller is unable to allow showings for 5-10 days for personal reasons?
- If we are looking at averages and comparing, what about all the new development listings or newly built homes that are often marketed for weeks, months and even years, without being listed anywhere, but still sold in their 'shadow inventory'? Those are often placed into the system, and within 24-48 hours, miraculously show as contract signed? This practice sways averages artificially and in some areas where a larger percentage of homes being sold are in new developments, it can be completely misleading.
- What about those who list a home, get a signed contract, and then the property closes 3 months later, but the agent keeps the property active as there is uncertainty around financing? Those 3 months added to days on market skew averages and perceptions, too.
- Most people who search online never realize that the way things are automatically sorted is often done so by 'most recently listed'. This leaves properties that are on the market longer, for a multitude of reasons, at the bottom of the list. (Unless, of course, you pay more to be at the top of the list)
There is no such real estate marketing where any home is sold in a day, anywhere on earth. The vast majority of home sales are a result of at least a few days, weeks or even months/years of marketing efforts. The number of days on the market is just one small aspect. Often, homes that have been on the market for many days sell at premium prices. Often, those that don't are not necessarily bad homes, but possibly unstaged, over-priced or dozens of other (good) reasons.
Worse of all, the end of the days-on-market fallacy may be the real estate profession's best friend as it might reduce the number of messages some agents send out blasting "SOLD IN 2 DAYS!!!!" which in many cases is not accurate and reflective of the marketing. Yes, there are some homes that sell extremely quickly, but most are a result of lots of marketing efforts leading up to that moment, often over many days, weeks, months, and even years. The message of "QUICK AND EASY" is not serving our profession well. Worse, it's inaccurate: it's almost never "QUICK AND EASY".
