Before the pandemic, a house that had been sitting for sale in the real estate market for more than 30 days was considered a stale listing. Now that the global pandemic has changed the way we do pretty much everything, including buying and selling homes, do the number of days a home has gone unsold matter as much?
Before the days of COVID-19 and distancing laws the number of days a home sat for sale was a prime indicator of the fair market value and could be used as a bargaining chip for a buyer to obtain a lower sale price. We are still in a fairly healthy housing market and real estate is continuing to get stronger, but some buying and selling practices remain under the rules of the pandemic. This has caused a shift in the importance of how long a house is on the market.
The Basic Facts About a House’s DOM (Days on Market)
When you look at on online listing of a home you may notice the letters DOM and a number next to it. This is the Days on Market- the exact number of days the home has officially been listed for sale on the multiple listing service (MLS).
The average expected DOM for homes can vary by location and market conditions as well as factors of the individual home for sale, especially the listing price. The general price bracket can also have an effect. For example, luxury homes commonly have a longer DOM because the pool of qualifying buyers is smaller. Commonly the higher a particular property’s DOM is, the natural reaction is that buyers are responding poorly to the house.
Comparative sales in the neighborhood were used pre-pandemic to help determine whether a home’s DOM was uncharacteristically high. This would give an agent insight into how much weight to put on a home’s high DOM.
The Weight and Importance of DOM During Covid-19
Due to many different variables caused by the pandemic such as people reconsidering buying, selling, and moving further away from their current locations DOM may not carry as much significance to the selling price of a home as it did before this all started.
COVID-19 has changed the home buying process and slowed it down a little in many ways. So if you see a home that has been on the market for a longer than seemingly usual amount of time, it may not be because it is not a highly desired home in great condition, it might just be because showings have slowed down due to distance rules. Or it could be the backlog in buyers being approved for home loans. If you are hoping to buy a house and something looks interesting don’t hesitate to be flexible with the process and tell your realtor you are interested in checking it out.
Information and Resources from the Following Agents:
Kris Swierz - Seattle Real Estate Agent
David Fleming - Fairways of Champion Circle, Texas
Mark Ciochon - Woodland Homes in Omaha Nebraska
Aaron Shumway - Relocating to Gilbert AZ
Pam Pester - Commercial Real Estate Tenant Rep
