Higher Inventory Provides More Options

“Days on market” can sometimes stigmatize really great homes

Remember in 2020 when homes were flying off the market in spite of an ongoing pandemic? Inventory was low, interest rates were low, and “Days on Market” (the counter that shows how many days a listing has been exposed to the public market) was way down.  Most listings showed less than two weeks before a contract, some even went under contract the same day they were listed or before marketing even started!

In those days, if you came across a listing that was a few months old, it was a useful indicator.  “In this wild market, why hasn’t this sold?”  Many times it was something obvious like the condition of the house, or a crazy slope to the lot.  Other times it was hidden defects like foundation issues buried in the disclosures, or something only obvious once you toured the house like that sweet wet basement stench.  (Ah, Tennessee valley moisture!)

But today we’re seeing inventory rise.  Many times when I run market reports for comps, I’m seeing inventory creep up to seven, eight, even nine months of housing supply depending on the neighborhood. That’s pointing toward “buyers market” territory.  So what happens to our beloved Days on Market statistic?  Naturally, things are taking longer to sell, and the current median Days on Market for closed listings in Nashville (Davidson County) is hovering around 37.

So: When we shop for a home, seeing a listing that’s been on the market for awhile doesn’t necessarily mean there’s something wrong with it, not in this market.  It may simply mean it’s not priced right, it’s going through price corrections, or it simply hasn’t found a buyer that’s ready/willing/able to love it.  If we can adjust our mindset and be open to more than just the freshest listings, our options increase, and the better chance we have of finding just the right home.  —KM