When you’re buying or selling a home, you’ve likely heard the term “days on market” (DOM) tossed around. But what does it really mean, and why should it matter to you?
Whether you’re a buyer searching for your dream home or a seller trying to sell quickly, DOM can provide key insights into the real estate market and help guide your decisions. Understanding days on market can give you an edge, making the difference between making a savvy move or missing out.
In this article, I’ll dive into the concept of days on market, how it affects both buyers and sellers, and what factors impact this important metric. You’ll learn how to interpret DOM to better understand your options and strategies in today’s ever-changing market.
Let’s take a closer look at what DOM means and why it’s crucial to your real estate journey!
What is Days on Market?
Days on Market (DOM) is a term used by real estate professionals to refer to the number of days a property has been listed for sale before it goes under contract. The clock starts ticking the day the property is listed, and it stops when the seller accepts an offer. In short, DOM is a reflection of how long a property has been available for purchase.
For instance, if a property is listed on January 1st and goes under contract on January 15th, the DOM would be 15 days. It’s important to note that DOM typically only includes the days the property is actively listed for sale, not the days it is off the market for reasons like withdrawals or price changes. So, if a seller takes the property off the market for a few weeks to adjust the listing or make repairs, the DOM would be reset when the property is relisted. 
In addition to tracking individual listings, DOM is often used as a market health indicator. It can tell you how fast or slow homes are selling in a particular area or price range. A high DOM could signal that properties in the area are not moving quickly, while a low DOM might indicate a hot market where homes are selling fast.
What Does Days on Market Mean for Buyers?
As a buyer, days on market can give you valuable information about the property you’re interested in. Understanding DOM can help you make more informed decisions and potentially save you money.
Indicators of Market Conditions
One of the most significant things days on market tells buyers is how quickly homes are selling in a given area. If you notice a property has been on the market for several weeks or months, it could indicate that demand in the area is low, or the home may have issues that are keeping buyers away. A high DOM can signal that the home isn’t priced competitively or that there are other factors—such as poor condition or location—that make it less desirable.
Conversely, if a property has a low DOM, it could be a sign that the home is highly sought after. Properties that sell quickly might also indicate that you’re in a seller’s market, where demand is high, and competition is fierce. This information can help you decide how aggressively to pursue a home or whether you need to act quickly before another buyer snags the property.
Negotiation Leverage
DOM is also a crucial factor in negotiations. If a home has been on the market for a long time, it could give you some leverage when making an offer. Sellers who have had a property listed for weeks or months may be more willing to accept a lower price or more favorable terms for you as the buyer. On the other hand, if the DOM is very low and there are multiple offers, you might be in a bidding war, and your negotiating power could be weaker.
However, DOM isn’t always a sign of a deal. Sometimes, a long time on the market can be indicative of issues with the property itself. Always inspect the property thoroughly and ask your real estate agent for insight on why it hasn’t sold. DOM alone can’t tell the whole story!
Strategy Considerations
As a buyer, take DOM into account when forming your strategy. If a home has a high DOM, you may want to think twice about its market value and whether you can get a better deal elsewhere. But if you fall in love with the property, it could also be an opportunity to negotiate a better price. Keep in mind that DOM is just one factor to consider when evaluating a home, but it can significantly influence your buying strategy, particularly in a competitive market.
What Does Days on Market Mean for Sellers?
For sellers, days on market is a critical metric because it impacts both the sale price and the timeline of selling your home. Understanding how DOM works can help you avoid mistakes and adjust your approach to ensure a quicker sale.
Pricing Strategy
Pricing your home correctly is essential, and DOM plays a major role in determining whether your listing is priced appropriately. Homes that stay on the market for a long time often indicate that they’re overpriced or that something about the property isn’t appealing to buyers. As the DOM rises, potential buyers may begin to wonder if there’s something wrong with the property, which can make them hesitant to make an offer.
If your home’s DOM is high, it might be time to reevaluate your pricing strategy. Consider lowering the asking price or offering incentives to attract more buyers. A significant reduction in DOM can often come from making the right price adjustments, and sellers who are flexible may be able to turn a stagnant listing into a successful sale.
Seller’s Timeline
If your home has been on the market for an extended period of time, it’s crucial to be realistic about your expectations. The longer a property stays listed, the less likely it is to sell for the asking price. Sellers should be prepared for the possibility of price adjustments or additional marketing efforts to attract interest.
Understanding DOM is also essential for managing your timeline. If you’re in a hurry to sell, a property with a high DOM may require some adjustments, like reducing the price or making repairs, to generate more interest. Keeping track of DOM can help you gauge when to make these changes, ensuring you don’t miss any opportunities.
Marketing and Showings
Another reason DOM may increase is ineffective marketing. If your listing hasn’t attracted much interest, it may be time to try different strategies. This could involve staging the home more effectively, improving the listing photos, or increasing online advertising efforts. Homes with high DOM often require more work to stand out in the marketplace, and sellers who actively engage in improving their listing may see DOM decrease.
Sellers should also be open to feedback from real estate agents and potential buyers. Small improvements, such as fresh paint or landscaping, could make a significant difference in reducing the DOM and attracting offers.
What Impacts Days on Market?
Several factors can influence days on market, and understanding these elements can help both buyers and sellers navigate the real estate process more effectively.
Price
Price is the most significant factor affecting DOM. Homes that are priced too high compared to similar properties in the area will typically stay on the market longer. If a property’s price doesn’t align with current market conditions or comparable listings, it may be overlooked by buyers, contributing to a higher DOM.
Location
Location plays a huge role in determining how quickly a property sells. Homes located in highly desirable areas—close to schools, shops, or other amenities—tend to have lower DOM. However, if your home is situated in a less desirable area or requires more travel to access basic amenities, it could see a higher DOM.
Condition of the Property
Homes in excellent condition with modern updates often sell faster than those in need of major repairs or upgrades. Buyers are more likely to be attracted to homes that are move-in ready, while homes that require too much work may remain on the market longer. Staging and presenting your home in the best light can help reduce DOM and make it more appealing to potential buyers.
Market Conditions
The overall state of the market is another critical factor in determining DOM. In a seller’s market where inventory is low and demand is high, homes tend to sell much faster, resulting in a lower DOM. In contrast, in a buyer’s market, where there’s an abundance of inventory and less competition among buyers, properties may remain on the market for longer.
What Does Days on Market Indicate About the State of the Real Estate Market?
Days on market is a key indicator of the broader real estate market and can give both buyers and sellers insight into the current market conditions.
Seller’s Market vs. Buyer’s Market
In a seller’s market, where demand is greater than supply, homes generally sell more quickly, resulting in lower DOM. In a buyer’s market, where there are more homes for sale than buyers, DOM tends to be higher as properties sit unsold for longer periods of time.
Current Trends
When analyzing DOM, it’s essential to consider broader trends in the economy and real estate market. For example, rising interest rates or an economic downturn can lead to increased DOM as buyers become more cautious. Conversely, in a booming economy, properties may see shorter DOM due to increased demand and competition.
Use Days on Market to Make Informed Real Estate Decisions
Days on market is a crucial metric that impacts both buyers and sellers in the real estate market. By understanding how DOM works and what it means for your buying or selling strategy, you can make smarter decisions, whether you’re looking for your dream home or trying to sell quickly.
Paying attention to DOM can provide valuable insights into the state of the market, the pricing of a property, and the negotiation power you hold, too. Whether you’re buying or selling, use days on market as a guide to navigate your real estate journey with confidence!
 is an important metric for buyers and sellers alike. Understanding what it is can help you achieve your real estate goals.){kind=link}