What Impact Does Days on Market Have on a Home for Sale?

The short answer should be—nothing. But in my 20+ years as a licensed real estate agent in the Minneapolis Saint Paul metro area, I’ve found that many buyers get the wrong idea. If a home has been on the market for more than a week, they often think, “What’s wrong with it?” I’m here to tell you that nothing could be further from the truth.

The real estate market, like many things in life, runs in cycles. Sometimes it’s a buyer’s market, and sometimes it’s a seller’s market. For the last four-plus years, we’ve experienced a strong seller’s market. Buyers are used to homes flying off the market within days, which has led to the perception that if a home lingers, something must be amiss. But this belief is simply not accurate.

The Shift Toward a Buyer’s Market

We’re slowly edging back toward a buyer’s market, although I believe this phase will be short-lived. One of the main factors influencing this shift is interest rates. They’ve been hovering at high levels, causing many would-be sellers to stay put. Think about it—if you’ve locked in a mortgage with a 3.5% interest rate, would you want to move to a new home where the rate could be 7% or higher? Probably not.

This hesitation among sellers has led to a limited inventory of homes, which means that the market is slowing. Once interest rates drop again—and they will—the landscape will change rapidly. I predict we’ll be back to multiple offers and rising home values. The market could heat up fast, and homes that have been sitting will suddenly be in high demand.

Why Days on Market Don’t Always Matter

Just because a home has been on the market for 100 days doesn’t mean something is wrong with it. Sure, it could be overpriced or have issues, but more often than not, it’s simply a case of timing. In many cases, especially in today’s market, there are fewer buyers relative to the number of homes for sale. That’s largely due to interest rates—people aren’t buying because they can’t or won’t sell.

Let me tell you about a scenario I’ve encountered multiple times. I’ve seen homes sit for 200 days, seemingly forgotten by the market. Then, out of nowhere, a buyer shows interest, and suddenly there are multiple offers. The home didn’t change—it wasn’t a bad property—it was just bad timing. Sometimes, a home that’s been on the market for a while presents the best opportunity for a buyer. You might get a great deal simply because others overlooked it.

Buyers: Keep Your Options Open

If you’re serious about buying a home and getting the best deal possible, I recommend looking at every home that could meet your needs, regardless of how long it’s been on the market. Don’t dismiss a home simply because it’s been listed for a while—there could be several reasons for this, and many of them have nothing to do with the home’s quality.

In fact, rushing to buy the latest listing could land you in a multiple-offer situation, driving the price higher than it needs to be. Take the time to consider homes that have been sitting on the market a bit longer. They may offer you more negotiating power and a better overall deal.

Sellers: Timing and Strategy Matter

Whether you’re selling or buying, success in real estate depends on timing and having a solid plan. If you’re a seller, don’t worry if your home doesn’t sell in the first week. The key is to have a plan that aligns with the current market conditions. It’s essential to work with an agent who understands how to navigate these market shifts to get the best results for you.

If you’re ready to buy or sell a home, or if you’re concerned about how long your home has been on the market, I’d be happy to help you create a strategy that works. Contact me today to get started on your journey!

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