Market Demand Signals: What Days on Market Really Means

For single-family investors, Days on Market (DOM) has always been a useful metric. Today, it has become a critical signal of market liquidity and exit certainty.

DOM measures how long a property is listed before it sells. But the meaning of DOM has evolved. In current market conditions, it reveals more than demand—it reveals whether a property can exit quickly and predictably.

What Days on Market Signals Now

1. Liquidity, not just demand A fast sale can mean strong demand or limited supply. A longer DOM can indicate buyer hesitation, financing constraints, or oversupply. In many markets, DOM varies significantly by submarket and price point, and that variance is increasingly important for investors.

2. Price adjustments are patterns, not events Frequent small price cuts often indicate a seller willing to negotiate and move quickly. A single large cut may signal mispricing or resistance. The most disciplined investors look at the pattern of price adjustments, not the headline numbers.

3. Exit certainty is a risk factor For fix and flip investors, timing matters. If a property lingers, carrying costs increase and the exit window narrows. The risk is not just price—it is the ability to exit predictably.

What Investors Should Do Differently

Investors should treat Days on Market as part of underwriting. That means factoring in the probability of a delayed exit and adjusting plans accordingly. When using short-term financing, time is cost. When time extends, returns compress.

In short, DOM and price adjustments are not just market data. They are risk indicators.