In real estate, the average days on market refers to the average
amount of time that properties spend before being purchased or rented.
This measure can refer to the amount of time it takes a real estate
agent to move a property on average, or to the amount of time that
properties spend on the market within a given area. It is an important
measurement because it can indicate several things to potential
First, it can tell an investor that an area they are interested in a
buy-to-let property tends to move properties slower than in other
areas, and, therefore, may indicate that they could have a difficult
time seeing a return on their investment.
Otherwise, the average days on market number could indicate to an
investor that the property they are trying to move is not properly
priced or has some other problem that is keeping it from moving as fast
as other properties in a given neighbourhood.
For example, if the average days on market is 240 for a given area,
and a property has been on the market for over a year, it could indicate
to that investor that there is something less than desirable about that
property to potential renters.
It could also be a sign that the property is priced too high and
that potential tenants are simply not interested in paying that amount
for a property in that area.
However, one thing that it is important to remember is that if a
property does exceed the average days on market, this is not always an
indicator that there is a problem. Sometimes it is worth one’s while to
wait rather than to adjust the price of a property, even if it is taking
longer to move that property.
While average days on market should be taken into consideration,
there are many reasons that a property may not be moving in accordance
with the amount of time that properties are rented or sold in an area on