Days On Market: A Telling Real Estate Statistic

In real estate market analyses, of which there are plenty these days as the market is mired in uncertainty, you often hear days on market (DOM) cited as a telling statistic.

This means just what you think it does: the number of days between when a house goes on the market and when the closing takes place - when a seller accepts the buyer’s contract.

The Washingtonian, which features DOM in its recurring Real Estate By the Numbers feature, says that for those looking to buy or sell real estate, DOM is a very important statistic.

In a buyer’s market, the average DOM will be higher because inventory takes longer to sell; conversely, in a seller’s market, the average DOM is lower because homes are snatched up quickly.

This statistics below compare the average DOM in eight Washington-area counties from December 2005 to December 2006. It doesn’t take a genius to see the trend in all eight counties.

The length of time has virtually doubled, which goes to show why Virginia mortgage and Maryland mortgage activity are both down, as are home sales and prices in the areas of both states nearest D.C.

If you are in the market to buy a home, this means you can probably afford to take your time. The days of rapid home price appreciation when buyers put down offers on the spot are long gone. If you are trying to sell, you may have to be patient.

Of course, there are always exceptions. In the greater D.C. housing market, the good locations (read: close in) never seem to go out of style. Here’s a look at eight counties in the area and the DOM change in the past year.