Fresh vs. stale listings: understanding days on market (DOM)
Days on market (DOM) is the length of time from when a property is first listed to when an offer is accepted and a contract signed. In a sellers’ market like the one we’re in now, DOM is low. Huge demand and low inventory mean homes get snapped up fast and for top dollar: average DOM for December 2021 was 19. A year ago, it was 35.
The length of time a property stays on the market impacts selling price
The longer it sits without selling compared to similar properties, the less likely buyers are to make an offer at or above asking price, or in some cases, to make an offer at all. Homes generate the most interest when they’re new to the market. After a couple of weeks, interest drops and listings get “stale.” Even buyers new to the market will see how long it’s been on the market and assume there’s something wrong.
There are a few reasons why a property might not sell quickly: it’s overpriced, in poor condition, in an unfavourable location, or it has unusually high maintenance fees.
There’s no hard and fast rule for how many days is too many. It depends on your area, the property type, how it measures up to other homes in the area, what time of year it is, and what’s happening in the market. Your agent can help you figure it out.
How buyers can use DOM to make an informed offer
The longer a property has been on the market, the greater the advantage for buyers. Sellers who are having a hard time selling are more likely to negotiate. Condos.ca and property.ca both let you search listings by how many days they have been on the market: you can filter by any, less than 3, less than 7, less than 14, and less than 30. And each listing has that information front and centre.
Keep this in mind: if a property isn’t selling, sellers will often take it off the market and try again later so DOM is reset and it appears to be a new listing. If you take a look at that property’s price history on condos.ca, you can see if that has happened: you’ll be able to see if it was “terminated” (taken off the market) and when.
Read more: How price history makes you a smarter buyer
Sellers: keep your DOM low by pricing right the first time
The biggest mistake sellers make that leads to stale listings is overpricing. If your asking price is too high, and you refuse to adjust relatively quickly, your listings will be old news fast, and won’t sell for what it’s actually worth.
A good agent will help you price strategically and counsel you on an asking price that will generate the greatest interest – and get you offers that reflect the true market value of your home.
Want to access DOM filters and other useful search tools?
Sign up for an account on condos.ca for access to sold history, demographic info, comparison tools, listing alerts and more. (And if you’re already signed up, all you have to do is sign in.)