The housing market has recovered from the lockdowns. This year is even more competitive than 2019 with extremely low inventories and many homes selling for more than list price.
Today I want to explain how fast homes really sell and take a closer look at Days On Market (DOM) in different price ranges.
What Does Days On Market (DOM) Mean?
DOM counts the number of days from listing a property to acceptance of an offer. It is typically reported for homes that sold, so I will call it DOM-Sold.
DOM-Active – Days on Market of active listings – refers to the number of days an active listing has been on the MLS.
In June the average DOM-Sold was 27 days. Surprisingly, that’s 4 days longer than a year ago. It appears that even homes that have been listed for 30 or 60 days are now receiving offers.
The Most Popular Price Range Is …
This chart shows residential sales for May, June, and July 2020.
77.3% of all home sales were below $350,000. Only 7.3% of all buyers have closed on a home worth $500,000 or more.
1,700 homes sold between $150,000 and $200,000 (17.7% of all transactions). That’s the most popular price range.
How DOM’s Vary by Price Range
The next chart compares DOM-Sold (red bars) with DOM-Active (blue bars).
Homes listed between $150,000 and $200,000 sell the quickest. DOM-Sold is only 15 days.
Active listings in the same price range have been on the market for 53 days.
DOM-Active is usually higher than DOM-Sold, because it includes hard to sell homes (which are likely overpriced for their condition or location).
Which Homes Sell Above List Price?
The Sale to List Price Ratio compares the price per sqft of sold homes to their original list price. A value larger than 1 means that a home sold above list price.
In average, listings between $50,000 and $350,000 sold for more than list price in the past 3 months. You won’t find any bargains in this price range.
Homes listed below $50,000 sold for 16% above list price in average.
Curious About Active Listings?
Almost half of all active listings (48%) have been on the market for less than a month. 25% have been listed for 7 days or less.
On the other hand, 73 homes have been on the MLS for more than 1 year.
Why Is This Information Important for You?
For Sellers: These charts give you an estimate of how quickly your home might sell if it is priced correctly and properly marketed by an expert Realtor like myself. It also tells you how many buyers are looking in your price range.
For Buyers: You can see how competitive the market is in the price range you can afford. The lower the DOM-Sold the more likely you will have multiple buyers submitting offers that exceed list price.