Days on Market: Why They Matter
Updated: 4 days ago
Chips, bread, data, news, sooner or later, they all get stale. The same can be said of properties for sale. When you’re trying to sell, stale is one thing you don’t want your listing to become.
While there’s no hard-and-fast rule for when a listing becomes stale, the number of days on market (DOM) is a key metric that tells buyers how long your home has been for sale. DOM is an important metric for buyers and sellers, but the stakes are far higher for sellers, as we see a strong inverse correlation between the DOM and the property’s ultimate sale price. Properties typically generate the most interest when they are new to the market, and generally the longer a home is on the market, the more likely it is to sell for under the asking price.
As New Zealand’s Official Cash Rate rose over the past two years, the real estate market cooled with properties taking longer to sell. The absence of competition allows buyers more time to conduct due diligence, thoroughly investigate all options, negotiate a deal more suited to their terms, and seek out a ‘bargain buy’.
While the time your property is on the market can be as unique as your home itself, our data shows engaging in a well planned auction campaign can improve the sales timeline by bringing the maximum number of buyers together to achieve the best price. In an auction situation, buyers are provided with a deadline to participate in the sales process, and the seller gets a clear answer as to true market value on auction day.
With the element of competition, and a looming auction deadline, properties listed for sale by auction tend to sell quicker on average than other sale methods. (Our clearance rate for auctions are currently also three-times higher than properties taken to market by other methods)
In May 2023, Ray White Whangarei & Tutukaka’s median days to sell residential homes overall was 28 days, and 21 days for auction properties – far less than the REINZ Residential District median for May of 45 days taken from all sales in our area.
In a volatile and uncertain market, auctions are valuable in securing our vendors the best price possible and reducing days on market. The set time frame keeps your listing fresh and allows us to use market demand to help achieve a premium price. This is why our team is well trained in auctions. Sell faster by presenting your property well, pricing right, and working with a top agent with a clear strategy and experience in the market.
Image: 29 Georgia Lane, Kamo. Listed by Ray White Whangarei agent Warrick Harkness recently sold at auction for $1,107,500 after receiving multiple bids. Post written by Admin Ray White Whangarei