The start of 2021 is continuing in the same path as the previous year. Very low inventory of homes is keeping us in that Seller’s Market. Instead of going into the same details, this month I want to answer a question that I have been repeatedly hearing over the last few months:
“Why is the Days on Market still in the upper 20’s when we are seeing homes go under contract in just a couple of days?”
Answer: The way the days on market (DOM) is calculated has not changed, but the status options in the MLS has changed and is effecting the way DOM adds up. In the past you mostly saw a status of Active, Pending, or Closed. Now we have 3 different forms of Active: Active, Under Contract Accepting Back-Ups (UCB), and Active with Contingency (AWC). In any of these three statuses, the DOM will continue to increase even though UCB and AWC doesn’t mean the home is actually available without a contract in place. The DOM will not stop counting until the home is placed in Pending status.
It is a bit misleading. All-in-all if a home is priced correctly, you can still expect it to be under contract within a few days, or in some cases even a few short hours.
What other questions do you have for me?
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