To the date, real estate statistics contained in the monthly Market Watch publication of TRREB are based on the real estate listings. This only makes sense when there is the counting of the number of the transactions, calculating the median or average selling cost, counting new active listings or counting new listings.
However, there is one statistic that can surely benefit from the analysis deeper than listing level: Average Days on the Real Estate Market- recently referred to as the “Avg.DOM’’ in the Market Watch.
Recently, when real estate listings are reported in the market as sold, the days of listing on the market are calculated by taking the difference between contract date and sold date. This makes sense as this calculation is based on individual listings. This is due to the fact that some housing properties have been listed more than once by the same brokerage, salesperson and owing during the contract period.
This can be explained by an example. The share of sold out listings shown by the properties listed, relisted and terminated at least one time during the original contract period was almost 20 percent as compared to February 2019.
The real estate share has changed over the time since the introduction of the Stratus, MLS system of TREB. The average real estate share has been around 16 percent over the longer time frame.
The days on the real estate market calculation for the listing, obviously, this is undercount of the number of the days a real estate property was on the real estate market if there were one or more of the cycles of list-terminate-relist cycles for real estate property in the question.
To provide the more authentic measure of the average days on the market for a housing property. A new strategy has been developed by TREB specially called as Average Property Days on Market, or shortly known as “Avg.PDOM’’, which has all the properties that have been sold out by the TREB’s MLS System, regardless of the fact that whether they have a list-terminate-relist cycle or not.
Since January 2003, an average spread between the “Avg. PDOM” and the ‘’Avg. LDOM’’ statistic were around eight days. In March 2019, this spread was around nine days. Obviously, the spread has varied over the time.
First of all, this spread is seasonal, along with the both days on real estate market statistics generally. The spread between two DOM and the average days on the market have been lowest in spring months and in the winter months.
The real estate analysis points out to the fact that “Avg.PDOM’’ and “Avg.LDOM’’ tend to follow the same overall trend over the time. After considering the seasonality. The average days on the market tend to rise during times undoubtedly brought about by changing the economic conditions or changes in the policy environment.
In the near future, TREB may add the statistics of “Avg.PDOM’’ of monthly real estate market watch publications. At the same time, a breakdown by GTA municipality among “Avg.PDOM’’ and “Avg.LDOM’’ will also be provided.
