Days on Market (DOM) is a real estate metric that measures the total number of days a property listing remains active before receiving an accepted offer or the listing agreement expires.
Key Components
- DOM (Days on Market): The basic count from listing date to contract signing
- DOMM (Days on Market - MLS): Number of days a specific MLS listing has been active
- DOMP (Days on Market - Property): Total days the property has been for sale across all listing agents
- Average DOM: Market-wide metric showing typical selling timeframes in an area
How it Works
DOM calculation follows a straightforward process:
- The property is listed on the market (start date)
- The clock runs daily while the listing remains active
- Counting stops when the seller accepts a buyer's offer or the listing expires/withdraws
- The final count represents the property's DOM value
In the Philippine real estate market, DOM tracking typically begins when a unit is posted on a property listing platform or registered with a brokerage's inventory system.
Pros & Cons
Advantages:
- Identifies overpriced properties quickly
- Helps buyers negotiate better deals on high-DOM listings
- Signals market demand for specific locations or property types
- Enables real estate brokers to adjust pricing strategies
Disadvantages:
- Can be manipulated through listing withdrawals and re-listings
- Does not account for seasonal market fluctuations
- May create negative stigma for properties with legitimate reasons for longer market time
- Varies in calculation methods across different platforms
Real-World Application
In the Philippine real estate industry, DOM serves as a critical performance indicator for:
- Pre-selling condominiums: High DOM may indicate the unit is priced above comparable properties in the same tower or project
- House and lot packages: Extended DOM suggests potential issues with location accessibility, pricing, or market fit
- Sales pipeline management: Agents use DOM to prioritize follow-ups and identify listings needing price adjustments
For realty hubs and brokerages, tracking average DOM across inventory helps assess overall sales team performance. A rising average DOM signals the need to revisit pricing strategies or improve lead generation efforts.
When a property exceeds the market's average DOM (typically 60-90 days for Philippine residential properties), sellers often consider:
- Price reduction (commonly 5-10% below original listing)
- Enhanced marketing through virtual tours or open houses
- Reviewing the property's market value assessment
Related Terms
- Real Estate Cycle
- Property Listing
- Market Absorption Rate
- Sales Pipeline
- Real Estate Broker
- Inventory Turnover
References
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