Reventure App now features access to Days on the Market data for every state, metro, county, and ZIP code in America. Often abbreviated as DOM, Days on the Market is an important data point to track so you can understand if your area is shifting from a sellers to a buyers market.
For instance, if the Days on the Market for listings is increasing significantly from the previous year, it's a sign that that the market is becoming more buyer friendly.
You can see this trend outlined in a metro like Nashville, TN. Where the median Days on the Market for all listings measured 34 days in June 2023 (meaning that the typical listing lasted 34 days until it went under contract or was de-listed).
This DOM level was more than double the 16 days on the market last June, and nearly triple the DOM from June 2021, highlighting how much Nashville's market has slowed down from the pandemic boom. In fact, today's DOM levels are in-line with pre-pandemic trends and suggest that prices in Nashville have a good chance of falling further in the second half of 2023.
Digging further into the data in Nashville shows big differences in how much DOM is increasing within the metro. For instance, in Bellevue, a wealthy suburb southwest of the downtown area, DOM has grown by a whopping 293% from where it was a year ago, increasing from 7 to 27 days.
Now 27 days might not seem like a lot. But it's actually the third-highest DOM level for June in this ZIP code going back to 2016. Indicating that the local market has softened considerably.
Texas and the Southeast have the biggest growth in Days on the Market
The biggest increases in Days on the Market in America are coming primarily in Texas as well as across the Southeast Sun Belt, with Waco, TX registering the number one spot for becoming more buyer friendly.
DOM in Waco has surged from 23 days last year to 62 days in June 2023, an insane 170% growth rate in the length of time houses are sitting on the market (meaning that Chip and Joanna Gaines are going to have some difficulty selling their flips in coming years).
Nearby Austin, TX also ranks highly in becoming more favorable to homebuyers, slotting in the #6 spot with 120% growth in DOM.
The remainder for the top 10 list is dominated by Southeast metros, highlighted by Raleigh, Huntsville, the aforementioend Nashville, Durham, Pensacola, North Port, and Port St. Lucie. Yet another indication that the housing downturn in America is hitting the pandemic boomtown areas first (although interestingly prices in most these areas haven't dropped by much yet).
How to access and use this Data on Reventure App
This data on DOM is accessible through two different data points on Reventure App:
1) Days on the Market
2) Days on the Market Growth (YoY)
The first data point tells you the raw data on Days on the Market. The second tells you how much it has grown over the last year in percentage terms. You can access both these data points under the Real Estate Data dropdown.
I personally find the first data point, Days on the Market, to be most useful when looking at a historical graph over time in a certain metro or ZIP code. Meanwhile, YoY Growth is most useful when looking at a map and trying to compare areas against each other.
Note that context is important here, especially with raw Days on the Market. Certain Housing Markets, or ZIP codes, tend to be faster or slower than others. For instance, the DOM in Pittsburgh today is 47 days, much higher than Columbus, which is at 23 days.
Does this mean Pittsburgh is a more homebuyer friendly market than Columbus? And that home prices have a higher likelihood of declining in Pittsburgh into the future?
Maybe. It certainly does say that a homebuyer in Pittsburgh will likely face fewer bidding wars. However, in terms of direction of prices into the future, we can't really say. That's because what matters more for these metros is the change in DOM over the last year, and how the DOM today compares to the historical levels.
You can see that while 47 days in Pittsburgh is high compared to other markets, it's actually very low for this area historically.
So before seeing serious home price declines in Pittsburgh, DOM will likely need to increase further into the future, which will cause sellers to get more desparate to sell.
Source of the Data and note on Seasonality.
The source of this DOM data, along with the inventory and price cut data in Reventure App, comes from Realtor.com's data library. This data updates every month as Realtor.com releases new data.
One additional thing to note is that there's tremendous seasonality in Days on the Market. In the spring and summer DOM tends to be lower since more people are buying this time of the year. But by the Fall and Winter, DOM increases substantially. You can see this trend in Nashville from a monthly data dashboard I provide to my YouTube Channel Members:
You can see that DOM usually "bottoms" in the spring around 32-33 days and then surges up to 50+ days by the winter when buyer demand is much lower. By the later winter, when inventory drops, so does DOM, and the seasonal process starts all over.
Due to this tremendous seasonality in DOM, it's important to focus on how the data tracks in the current month compared to the same month in the previous year. Which is what the historical graph data on Reventure App does.
What does the DOM data look like in your city and ZIP Code?
As a fun little exercise - I'd like you dig into Reventure App and see 1) what the raw DOM figures are in your city/ZIP code and 2) how much they have grown over the last year.
Post the results in the comment section below. As well as some feedback on if the data matches your impression of how your local housing market is shifting.