Days on Market: Why They Matter

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 because 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.

While the time your property is on the market can be as unique as your home itself, how long it takes to sell a house is also heavily reliant on the competency of a real estate agent and their experience working in more difficult markets, their marketing strategy, the method of sale they use and how they apply this to market conditions at the time.

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 an open and transparent 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 a volatile and uncertain market, auctions are valuable in securing our vendors the best price possible and reducing days on market – and they work equally as well in other markets. 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 the auction process.

In July 2024, Ray White Whangarei & Tutukaka’s median days to sell residential homes by auction was 20 days for auction properties – far less than the REINZ Residential District median for July of 45 days taken from all sales in our area. But premium sale prices don’t just happen – they will only be achieved with effective management by an astute agent.  Our data also shows that our team outperform regional averages – achieving our vendors a price premium when they sell with us.

Sell faster and achieve the best possible results by presenting your property well, pricing right, and working with a leading agency with a clear strategy and experience in the market.

Image: 22a Princess Street, Kensington. Listed by Ray White Whangarei agent Melissa Codlin, recently sold at auction for $810,000 after receiving 24 bids at auction.