Ten Days on the Market?  Or One?!?

The housing market this Spring — at least for some kinds of homes, in some Twin Cities neighborhoods — is even hotter and faster than most people realize.

timerThat’s because a key MLS statistic that purports to track market time in fact significantly overstates how long a particular home has been on the market before it sells.

“Days on Market,” Defined

Given the name “Days on Market,” you’d certainly think the term meant the number of days a home was available before it sold.

And you’d be . . . wrong.

As Realtors use the term (and as MLS keeps count), “days on market” in fact refers to the number of days until the Buyer’s Inspection Contingency is removed.

“10 Days on Market” — But Sold Day 1

Given that the Buyer’s Inspection timetable is now 7-10 business days (it’s been getting longer), that means that a home which — according to MLS — was on the market for a week or more in fact likely sold . . . immediately.

In multiple offers (although that won’t be obvious until the closing price — presumably, above ask — is published 6-8 weeks later).

What’s the significance of any of that?

Just that — as is often the case — what Realtors know to be true of the housing market at any given point vs. what is captured in official MLS statistics (not to mention newspaper headlines) can be very different.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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