Sunday, August 26, 2012

Average Days On Market

From start to finish sellers want to know how long it's going to take to sell their home. Any good Realtor knows that there are many factors in determining the likely answer to that question.

What type of market are we in ~ buyers market or sellers market?
Is the seller going to prep the house for sale?
Will the seller price it appropriately?
What price range is the property in?
How many buyers are buying in that range every month?
How many listings are on the market, now and 3 months ago?
What selling season are we in?
What's your competition?
I could keep going, but you get the picture.

With that in mind I thought I'd share with you a different type of stat than I've shared before. Let me know if you find it interesting, let alone worth reading.

In the last 90 days of home that have closed escrow according to our local MLS; below is information about the Average Days On Market ~ i.e. how long did it take to sell a home.

Under 250k ~ 324 homes sold ~ ADM = 102
250-500k ~ 568 homes sold ~ ADM = 87
500-750k ~ 98 homes sold ~ ADM = 95
750k-1M ~ 25 homes sold ~ ADM = 130
And, 1M + ~ 14 homes sold ~ ADM = 86

Looking at those same categories, but just Traditional (Standard) Sellers:


Any way you look at it, the average time to sell a home, anticipating a 35 day escrow period, is between a month or two. I can pick them apart further for you, but I could bet you that the ones that moved quicker were the ones that were priced right. And, the ones that took longer experienced a price reduction or two.

Now, you're thinking, "but dang, I've seen properties going out with multiple offers in just a couple of days". And, you would be right. But, you would be wrong if you thought the ones priced well over current market value were part of that 'but, dang'.

I can sell a gorgeous home, a mansion, a sweet little pink house, a condo, a anybody. There is a buyer for every type of property, everywhere. Price is what makes the ultimate reason for a home selling. And, price is what makes the average days on market be long or be short.

How long do you want to be on the market?

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