Recent Market Statistics
HOUSING MARKET STATISTICS (updated July 8, 2010)
100% of people that eat carrots will die. I mention this to remind people to be careful in how they interpret statistics as they are easily manipulated to prove a point.
One of the most common statistics people ask me about is the average number of days a home is on the market before selling. It’s not uncommon for homes to go through several different periods of being listed. Once a listing comes to the end of it’s term (3-6 months is not an uncommon listing period), if it’s re-listed with another agent, the listing will be assigned a new MLS number and the days on market will revert back to 0 days. If it’s re-listed by the original agent, a saavy agent instead of simply extending the listing term by mutual agreement, will request that the seller fill out a new listing agreement and supporting paperwork. Even in this scenario, the listing will be given a new MLS number and the days on market goes back to 0 days.
Some homes that have been listed for many months or longer end up being reported as having sold in days or weeks because they been re-listed and sold shortly thereafter. Given this, the days on market statistics won’t accurately reflect the average number of days a home is on the market. How long will your home be on the market before selling? The only thing I know for certain is that the average number of days it takes for a home to sell as provided by our MLS will have no bearing on it. It’s solely going to be based on how competitively your home is priced, how well your agent markets your home, the supply/demand for homes in the same price range as your home and how well you maintain your home during the listing period.
Instead of focusing on the average days on market, look at how many months supply of homes are currently on the market in your home’s price range. If the answer is a couple of months, it’s a seller’s market and you’re in luck. Home prices will likely remain stable or appreciate (unless the low supply is due to stimulus from a short-term government program like the recent tax credits which ended April 30, 2010). If the answer is over six month’s supply and approaching a twelve month’s supply, it’s a buyer’s market and you should price your home aggressively and plan for a longer listing period. You want to price your home to sell as prices may be headed lower. A balanced market has about six months supply of inventory.