If you’ve been selling real estate for two or three years you’ve grown accustomed to properties going under contract within a couple of weeks. Our average days on market has hovered right around 25 days. As our market slows, we can expect the days on market to significantly increase. In fact, the days on market average over the past 30 years is 70 days. Even if you look at the last hot seller market in the 1990s, the days on market was around 50 days. The 25 DOM of recent years is super fast in comparison to historical averages and it’s going to change.
As our market slows, sellers must be made aware of the significant risk of overpricing their listings. In a slowing market, overpricing a home will have a huge impact on days on market as well as ultimate sales price. Over the past two years, properties that did not need a price adjustment sold in about 13 days, whereas the homes that needed a price reduction took about 58 days to sell.
Here’s a chart pulled from our new class on How to Thrive in a Changing Market. It’s a good tool to show sellers who want to “test the market” with an over-priced listing. Our Thrive class offers lots of tools and guidance on how to ramp up business as our market cools off. If you’re interested in attending, head over to our classes page and register for an upcoming class. If you want our weekly training schedule sent to your inbox every Tuesday, scroll down the page and sign up for our newsletter.