Skyrocketing Days On Market Means Big Changes!
Edited by Ashley McCrea
The average Days On Market in Florida are skyrocketing when it comes to real estate in 2023. What’s the
psychology behind it? And, more importantly, what does this mean in terms of the future of pricing?
What is “Days On Market”?
Days On Market, or DOM, is the period of time between when a property is listed in MLS, or Multiple Listing Service, and when a contract is received. DOM increases for as long as the property takes to get a contract. Basically, DOM is how long a property took to attract a buyer.
In real estate, there’s a slightly different variation called CDOM, or Cumulative Days On Market. We use this to measure the total length of time a property is up for sale, from the time it is listed on MLS to when it closes. CDOM continues to increase even if the property has a contract and is taken off MLS, as it is not officially sold yet. In short: DOM is the active marketing time on a property, while CDOM is the total days it took for the property to sell.
Current DOM In Florida
About a year ago, DOM in many areas, including Florida, was at an all-time low. Sellers could expect their property to stay on the market for an average of 6 days before getting a contract, and the day those contracts came in there was a buyer frenzy. This made the market act a little irrational, with homes selling for way over the asking price and housing prices jumping to record highs. Now, Florida’s DOM has increased to 28, four times higher than this time last year. Sellers can no longer expect to get an offer the first week their property goes on the market, which you need to be aware of if you’re thinking of selling soon. Buyers aren’t in such a hurry to put offers on properties and they’re
not as nervous about losing out on properties anymore so they’re slower to make decisions. They also expect to negotiate more with a home that’s been on the market longer, as they wonder why no one else has bought it yet.
Advice for Sellers and Buyers
If you are looking to sell, be sure to have a conversation with your listing agent about how to excite the current market with your listing. You’ll have to be creative if you want to get a high buying price for your property in such a sluggish market. If you’re looking to buy, don’t write off a home that’s been on the market for a number of months. A lot of times, a seller gets more motivated to sell their property as time moves on. They may have priced the property incorrectly from the get-go, and if this is the case and they’re motivated enough to sell their property, it’s likely they’ll have price reductions as their DOM increases to try to meet the market. However, it gets harder for a seller to excite buyers when a property has been on the market for a while, so it’s a good opportunity for you to try to talk the seller down in price and benefit from the slow market.
If you are considering selling and want to get an idea of what your Florida home is worth, send an email to email@example.com. If you’re looking to purchase in the area, you can get a jumpstart by filling out your home wish list here: https://forms.gle/B91pjBStQbEnUCBPA
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