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This is up from 60% a year ago, so it's not like this is some huge aberration. Tbh it seems like a odd metric to use as an indicator, since it seems like more o
by tqi 2y ago
This is up from 60% a year ago, so it's not like this is some huge aberration. Tbh it seems like a odd metric to use as an indicator, since it seems like more of a reflection of how long ppl are leaving listings up rather than how quickly stuff is selling.
The fact that they didn't go with more straightforward metrics like transaction volume or avg price tells me there's nothing really there, and this is just content marketing built on confirmation bias.
- toomuchtodo 2y agoDays on market metrics in the aggregate indicate price trend and demand. The longer a house sits unsold, the greater the evidence it is mispriced, as every property has a clearing price. 30+ days on market and not under contract? Your asking price is too high. Up 60% YoY with the Fed having raised the benchmark rate at the fastest pace in history? The signal shows sellers have not made peace with an asset price level that no longer exists, and the market has exhausted price insensitive buyers. https://www.opendoor.com/articles/why-days-on-market-matter https://www.opendoor.com/articles/why-days-on-market-matter
- pandaman 2y agoThis is not "days on market" in aggregate though. This is the percentage of the current listings, which are older than a month. Imagine a very hot market, where almost anything gets snatched the same day. Any listings in such a market that will remain for longer than a day are some overpriced hovels, which nobody wants to buy for any price. So the percentage of the listings that had been "sitting for longer than a month" can be anything in there, depending on how many people wanted to put up their hovel at ridiculous price and the "days on market" can be under 2 days.
- kthejoker2 2y agoYes this. Everyone who has no intention of selling their home (in a Georgist manner) could list their house for 5x the going market rate (youd probably sell if and then this metric would be effectively 100% and yet many houses would still sell. This number is therefore mostly a reflection of a strong selling market since it's encouraging people to list who otherwise might not bother.
- tqi 2y ago> This is not "days on market" in aggregate though. Exactly - if days on market had told a compelling story they would have led with that. This is content marketing first and foremost, not a scientific study. The process of writing one of these starts with choosing a narrative that will get attention, and metrics are chosen to fit that narrative.
- tqi 2y agoAlso to clarify, when I said "there's nothing really there" I meant that the evidence is weak, not that the implication is right or wrong.