Have you ever seen a “reduced for quick sale” section in the grocery store meat section? It always seems a little sketchy. You know that meat is pretty old if they’re lowering the price so much. What if it isn’t good anymore? Is it bad just because it’s a little older than the rest?
Enter DOM. Days on Market. This is a measure of how many days a home has been listed for sale in Colorado Springs. It’s a super simple metric. But what does it mean?
Generally, you compare the DOM for a house to the average DOM. Let’s say the average DOM in Colorado Springs is 20 days. If a home has been on the market for 50 days, you may start to wonder if it is overpriced or if there is something wrong with the house. You start to wonder if the seller would be open to a low offer. If a home has been on the market for 10 days, you may realize that the seller likely isn’t open to low offers because the home hasn’t been on the market even the average length yet.
The other way to use DOM to evaluate the real estate market in Colorado Springs is as a market indicator. If the city average DOM is super low, like 10 days, then you’re probably looking in a Seller’s market, where homes are selling very quickly and the balance of power is generally with the seller. In a Seller’s market, there may be bidding wars and home prices tend to rise more quickly than average.
If the DOM is high, like 60-70 days, then you’re probably looking at a Buyer’s market, where homes are taking a while to sell and buyers generally have more power and control than sellers. In this market, homes generally sell for less than the asking price, and buyers are able to shop around without being in competition with other buyers.
As always, there are exceptions to every rule. Just because a home for sale in Colorado Springs has a high DOM doesn’t mean it is a bad deal. And homes with low DOM don’t always have inflexible sellers. Talk with your agent about how the DOM might make your home appear to potential buyers and real estate agents in Colorado Springs.