News Article From: 08-15-2007
The Average Days-on-Market reached a new record high in February. When the
market was in equilibrium, this number was typically between 60 and 70 days. Average days-on-market is the average number of days houses that were sold were listed. The graph below illustrates the drop in this number as the market began to gain sales velocity about June 2004. It bottomed out about August 2005 and has climbed steadily since. It has now shot right past the normal range and in February it hit an all time high of 96.92. In June, it rose to 91.97 days, up from 89.83 in May.
Note that the data points for October 2004 through January 2005 are excluded because the method by which they were calculated provided results which were drastically distorted. We should also note that there were numbers as low as 5.5 days reported during that time period, again the calculation by which those numbers were arrived at was faulty.
It appears that the days-on-market may have peaked out, but it remains significantly above the norm as it has been since August 2005. Another interesting phenomenon is the flip which occurred in mid 2005 in the relationship between days-on-market for single family detached homes and that same measurement for condos.
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