One of the areas of research to help property investors determine the demand for an area is the average days on market (DOM).
This statistic will help you determine the level of demand for property in the area as it is a measure on how long it takes property to sell.
Real Estate Investar provides data on this statistic to help property investors understand how quickly a property will sell.
The average days on market is a measure to show the number of days a listing has been on the market until it is sold. If the days on market number is low, it generally indicates there is high demand in the area and properties are selling quickly.
If the days on market number is high, it generally indicates there is low demand and properties are on the market for a long period of time.
For example, if the area has an average days on market figure of 100+ days and you're trying to flip a renovated property, it may mean higher holding costs (i.e. interest repayments) because it takes a couple of months to sell a property.
Whereas an area with an average days on market figure of 15 days means the property will sell quickly.
How do I obtain this information?
Through Real Estate Investar's Pro Plus Membership, members have access to CoreLogic RP Data and can run a Market Comparison Report.
This report will provide the following data:
- Days on Market for each property
- Average Days on Market for all listings selected within a suburb
- Average Days on Market by price range for listings selected within a suburb
Members can also customise the search to see if a specific property type or bedroom configuration is in more demand than others (for example, run the report to establish the days on market for a 3 bedroom house vs 4 bedroom house.