One of my favorite reports from the Minneapolis Area Association of Realtors (MAAR) is the monthly market update for each local real estate area. I review these reports with my clients to help them understand their local market better. As an example, here’s a link to the current update for the Plymouth real estate area. Email me at vicky@vickynann.com if you'd like to receive a report for your area.

The “average days on market until sale” number can give both buyers and sellers insight into the local market's activity level. To arrive at this number, MAAR adds up the cumulative days on market for listings that sold that month, and then divides it by the number of properties that sold. (The “cumulative” day-on-market number is the total of all the days the house was listed by the current owner in the past 12 months. The number may be greater than 365 if the property was an active listing that started more than a year ago and continued into the past 12 month period.)

The average-days-on-market number may not be terribly helpful if only a few houses sold, especially if there were outliers such as properties that sold very quickly or that were on the market longer than is typical. But it's a good starting point for a discussion about local conditions; I take the analysis a step further and dig directly into the MLS data to show my clients exactly what’s been going on right in the neighborhood.

Keeping in mind that most properties take 30 to 60 days to close, you can subtract a month or two from the average to ballpark when a purchase agreement was signed. Homeowners whose properties have been on the market longer than the average for their area without an offer may benefit from a review of the market activity details and buyer feedback, and adjust the price or make improvements to the property accordingly.

Questions? Email me at vicky@vickynann.com.