The other day a client of mine emailed me and asked me about days on market for sold properties in Lincoln Park for January. Sitting at my computer I pulled up the system I use to access the MLS. I ran a quick report and discovered the number was 145 days. I then pulled up the MLS reporting package I use and ran a quick report and just as expected, days on market was 89 days. Ummmmmm, wait a minute check that. I reran the report and yes 89 days again.
So what is going on here? Digging a bit further there are two ways that days on market (DOM) is being calculated. The two different calculations are a result of the fact that in the MLS there are two different market times, market time and listing market time. Market time is cumulative across listings. Listing market time is specific to that listing. An example…
123 Main Street was first…
listed on 1/1/2008 and cancelled on 1/31/2008 and then relisted on 2/1/2008.It is now 2/11/2008 so…
market time would be 42 days while listing market would be 11 days.
It seems that one system uses market time in their calculation leading to a much higher number while the other uses listing market time. Which one is correct? Not sure but I think DOM based on listing market time is the more accepted calculation, while DOM based on market time may paint a more telling picture. Same statistic, two very different results.
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