Days on market (DOM) is a great indicator used by real estate professionals, as well as buyers and sellers, to analyze the demand for housing in the real estate market. The National Association of REALTORS® defines DOM as the number of days between the day on which a property is listed for sale on the local multiple listing service (MLS) to the day it is sold.
The calculation to determine days on market is simple: take the list date minus the sold date to get the total number of days a property was on the market. When the trend for days on market is decreasing, homes are selling faster indicating stronger demand. The opposite is true for when days on market increases.
As we evaluate data to make real estate decisions, it is important to look beyond the big market summary numbers and truly understand the nuances between neighborhoods and price bands. For example, when looking at all the historical data from Maui, one will see that properties are selling faster than ever, but armed with this data alone one may make a hasty decision they might regret later.
From the graph above, it would appear that days on market is just over 80 days, however, when the collective data is further broken out by price range, there are many nuances to consider. In the table below, DOM fluctuates between the property type per price brand. For this reason, DOM most often reflects an average based on a certain time frame per property type.
Days on Market by Price Range
Further to the breakdown of price is the consideration of market area. Real estate is local and as such, each market area has several contributing factors to demand. For example, when comparing three distinct market areas on Maui you will find that days on market vary from price range to price range, market area to market area.
As Coldwell Banker Island Properties continues to present our market analysis, we encourage you to work with your REALTOR® to dig deeper into the data around price point, neighborhood, property features, and consumer preferences, so that you can make the most informed real estate decision possible whether you plan to buy, sell, or invest.
Learn more about DOM and how it may affect your buying or selling journey by connecting with one of our expert agents here.