Average Days on Market by Sale Type 2011 06Posted: July 27, 2011
Standard Sales On Market Longer than Distressed Sales
Days on market is the number of days from the time a home is listed until a contract is accepted. The average days on market reflects the time it took to sell every home sold in a particular period and is an indicator of housing demand. A low average, say less than 30 days, is characteristic of an overheated market where demand exceeds supply. An average above 90 days is indicative of a slow housing market.
The graph below illustrates the average days on market in June 2010 compared to June 2011 by sale type. Remember that June 2010 marked the end of the First Time Buyer’s Credit program. Even though prices for bank-owned and short sale properties have declined dramatically since last June (-15 percent month-over-year and -17 percent respectively)*, it took longer to sell them this year. Although the median sales price for standard sales was 5 percent higher in June 2011 than it was in June 2010, the average days on market increased 23 percent since last June and, perhaps due to their higher prices, they take longer to sell than distressed listings.
*See Median Sales Price 2011 06