Since real estate agents do not get paid until a sale is made, many in Arizona work on weekends because it is a suitable time for prospective clients to view houses. So, increasing showing windows to have as many viewings as possible where they can seal the deal is vital.
Hence, one of the research areas to help real estate investors determine the demand for an area is the average Days On Market (DOM). The “days on the market” metric can help you make well-informed decisions on either side of a real estate deal as homes are selling faster than ever in this market: According to the National Association of Realtors in February 2022, the average time a property hang around on the market was just 18 days.
As such, Real Estate Investor offers information on this statistic to assist home buyers in knowing how quickly a property will sell. Hence, this data will help you determine the demand level for property in the location using the time it takes to sell.
This article covers all you need to know about the days a home takes to sell, whether you’re a home buyer or seller.
Without any further ado, let’s jump right into it!
Working Weekends in Real Estate for Estate Agents in Arizona
Working in real estate means being available to work when most people are less busy. So, you have to hold meetings, show homes, and open houses when the clients have the time. And the truth is, most people work, on average, a 9 am-5 pm job Monday to Friday.
That means most homebuyers will be available for house inspection on the weekends and evenings. Also, it’s when it may be easiest for seller clients to leave the house for a while so that numerous showings can take place in just one day.
What Exactly Does “Days on Market” And “Average Days on Market” Mean?
Days on the market mean the number of days a house has been open for sale. However, it technically measures just how long the home has been available for sale by a specific agent.
The total period a home has been for sale, irrespective of an agent, is called “cumulative days on market.” On various websites, buyers can see the history of this property’s cumulative listing if the seller formerly used a different agent or listed the property for sale by the owner.
The average days on market is an amount to show the number of days a listing has been on the market pending the time it is sold. If the number of days on market is low, it usually means there is high demand in the area and properties are selling fast.
Simultaneously, if the number of days on market is high, it typically shows there is low demand and properties stay on the market for an extended period.
Days on market are one of the best signs of whether you’re in a seller’s or buyer’s market. If most properties in a particular location are on the market for a short time, that indicates you’re in a seller’s market. Here, demand is high, inventory is low, and buyers must be fast about their decision. This situation may sound familiar to anyone presently looking for a new home.
Alternatively, if the market’s time is extended, that can signify a buyer’s market. Conversely, homes that take longer to sell can signal lower demand. Here, buyers may be a bit selective —sellers might need to be more obliging, including identifying that their house might not be worth what they feel it is.
For property investors planning to renovate and flip or build and sell, this information will help you determine whether your target market will be risky, ultimately affecting your future profits.
For instance, if the average days on market in the location is 100+ days and you’re trying to flip a refurbished property, it may signify higher holding costs (i.e., interest repayments) as it takes a while, say, some months, to sell a property. On the other hand, an area with an average day on market number of 15 days implies the property will rapidly sell.
Simply put, “Day on market” (DOM) is the amount of time to sell a typical home, given market conditions. While “Average days on market” is how long it takes to view a home from listing to pending.
What Days on Market Means for Sellers
Days on market can help enlighten your selling approach if you’re on the listing side of things.
Generally, if your home has been on the market for an extended period compared to other listings in your location, you may need to reduce the price or give concessions.
What Days on Market Means for Buyers
Arizona’s housing market is one of the hottest in the USA due to a discrepancy in house demand and supply. As such, if you’re a home buyer, it can be hard to seal a deal when homes in your location are moving fast, causing the average days on the market to surpass just a weekend.
However, you can benefit if a listing has suffered for longer than usual. Mainly, if the home is available — if the seller has moved already and is paying two mortgages, they could be specifically motivated, and you could be lucky.
Nevertheless, as homes are selling quickly in Arizona, be ready to stay a while to benefit from the market; as such, you may have the opportunity to negotiate if the house’s been sitting for some time. But it could also mean you’re dealing with an apathetic seller or one that’s stubbornly unwilling to reduce their price.
This section comprehensively outlines why average days on market may be extended, ultimately helping home buyers in Arizona make pre-informed decisions.
Main Reasons A Home Has Gone “Stale.” Or Stay Longer in The Market Or Main Reasons Average Days On Market Is No Longer Just A Weekend
It is more likely due to the home’s pricing or the economy. Here are some significant reasons a house has gone stale and how home buyers can benefit from each situation.
1. The Price Is Too High
The high listing price is one of the major causes why a home can sit on the market for an extended period. Every home will sell at the appropriate worth, and if it’s the wrong value, it will remain on the market forever. Buyers most possibly jumped when the home was put on the market and, after viewing the property, chose to buy something better and worth it.
Fortunately, a home seller with a house on the market for an extended period may be willing to sell more on the final price of a home. So, staying a bit until this period occurs is a win-win situation for home buyers in Arizona.
2. Off-Season
In most countries, spring is the perfect time for a home listing, as the highest number of buyers are looking. Obviously, winter is the slowest due to bad weather and holidays. But luckily, this time is an ideal period for homebuying in Arizona.
During the winter, most sellers are driven to offload a home on the market when home sales usually slow down. With that, you’ll be able to talk the seller down more than you would in May or June when sellers can traditionally demand higher prices for their real estate.
Therefore, to get the best possible deal as a home buyer in Arizona, be prepared to stay for a while and buy during the off-season (winter) as average days on market are extended during the off-season, making the home prices drop drastically.
3. Poor Condition of The Home
If several big-ticket stuff needs repairs, the home may likely be challenging to sell, causing the average days on the market to increase. After staying on the market for an extended period without being priced appropriately, homeowners may choose to lower their prices due to their poor state.
This ultimately lowers the price so buyers can refurbish on their own. Hence staying a while in the market for this low demand, making house sellers lower price scenarios occur, can benefit home buyers in Arizona.
Frequently Asked Questions (FAQs)
How Can I Know the Average Days on Market for My Locality?
If you’d want an in-depth understanding of your area, you can ask your real estate agent for their knowledge, view the local news for real estate movements, and watch other local listings. For example, are they off and on the market fast or presenting the same open house weekend after weekend?
How Do I Price My House Appropriately?
Compare your house to similar houses recently sold in the location to determine the best list price. Don’t just check the size; homes with similar square footage may sell for different amounts if one has considerable developments or is in a separate school area. Again, an expert real estate agent can help you determine the suitable list price for your home.
Is It Bad If a Home Is Pending Then Gets Relisted?
If a home has its status as “pending” and then gets relisted, this is not bad; it only indicates the sale was not finalized and is returned on the market. That can occur for some reasons, such as an issue with the inspection or buyers’ inability to get funds. It may or may not be as because of the home or the seller that is the problem.
Conclusion
Demand for real estate may start to reduce because of inflation and increasing mortgage rates, but the period it takes to sell a house currently is still relatively short. The average days on market in your locality are noteworthy, whether you’re selling or buying. If a home hasn’t commanded the kind of offers the seller is willing to in that time, buyers take note — the price may soon drop.
Hopefully, this article has given insight into everything you need to know about average days on the market and how to make the most of it as a home buyer.
Still have further questions, do not hesitate to leave them in the comment session below.
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