The DOM stat tells you how long a property has been listed before it Sold. It can be a useful tool, as it allows you to see which properties are new, or those that have been floundering on the market for a longer period of time and could be more receptive to a lower offer.
However, in today’s Calgary market the DOM stat is all but useless. Let me explain:
Last year in August 2007, the average single family home was on the market 39 days (Source) Last month in August, the average DOM was 52. Considering inventory is higher and sales volumes are lower, you would think that taking 13 days longer to sell a house is not so bad. That’s true – if the 52 DOM stat were completely accurate.
When you list your house with a Realtor, there is an expiry date to your listing contract. Two things can happen: 1) You can extend your listing contract to a later date, or 2) You can let the listing expire, and then relist. Why would you want to relist it? Perhaps you’ve decided to work with another Realtor, or maybe just didn’t get the extension signed in time. In any case, the DOM clock resets back to zero when a property expires and is relisted. (Some purposefully let it expire because when it is relisted all the email auto-notifiers get sent out and it’s advertised in CREN under the new listings section again)
In the past few years, when properties were actually selling in 60 days or less, the DOM stat was quite accurate. But now with close to 5 monthly supply inventory, homes are expiring and getting relisted frequently, skewing the DOM stat.
Just some examples – looking at homes that sold yesterday (September 17th):
Property 1
Originally listed on February 28th. Expired twice, and sold on September 17th.
DOM: 62
Actual DOM: 202
Property 2
Originally listed on April 21. Expired once, was terminated once, and sold on September 17th.
DOM: 19
Actual DOM: 135
(I even subtracted the few days in between the expiration/termination date and when it was relisted to make it more accurate)
Property 3
Originally listed on April 28th, expired once, sold on September 17th.
DOM: 16
Actual DOM: 142
Those are just 3 examples I found in the first 8 listings that sold.
Sellers: Don’t look at the DOM stat and try to gauge the length of time your house will be on the market. Chances are it will take longer to sell than that unless you’re priced very aggressively.
Buyers: Ask your Realtor to tell you the date it was originally listed. You’ll have a much better idea of how long the property has been listed for.
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If you’re thinking of buying or selling, feel free to contact me.
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Mike Fotiou
First Place Realty
Direct: (403) 554-2284
Mike Fotiou is a licensed Realtor®, Accredited Buyer’s Representative®, and Certified Condominium Specialist.
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