Question Details

Valentin, Home Buyer in Todorov

Hi, what is the methodology to calculate average time on the market?

Asked by Valentin, Todorov Tue Apr 15, 2008

Are you using properties that have already been sold, or you also take into account those that are still on the market to come up with the average number?

thank you,
Valentin

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Average market time is taking the days from entering the market to entering escrow.
Listing #1 45 days
Listing #2 55 days
Listing #3 65 days
Listing #4 70 Days
Listing #5 76 days
Total days 311 divide by five = 62.2 days
1 vote Thank Flag Link Tue Apr 15, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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I think you mean estimated time on the market, or absorption rate of current inventory? Take the number of homes on the market (available) in one month, divided by the number of homes CLOSED that month, and you have days on the market. Example 500 (available) divided by 25 homes closed = 20 months of inventory. It would take 20 months for all those homes to sell at the current rate ASSUMING no new homes come on the market.
1 vote Thank Flag Link Tue Apr 15, 2008
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