The How: As soon as the listing is added to the MLS, it is considered new.
The Oops: A new listing doesn’t automatically mean that the count of days on market immediately starts anew. In some markets, a listing that goes off the market and comes back on has the number of cumulative days on market tracked, as well as the days since the listing was refreshed as “new” in the current cycle.
ShowingTime prefers to use Cumulative Days on Market whenever it is available because it offers a truer sense of the time it takes to sell a listing.
Another Oops: Some people think the “New Listings” metric is a substitute for Inventory (or Homes for Sale). This is not the case. Inventory can include listings from dates prior to the current reporting period.
The Beauty: With data, people are always trying to identify reliable leading indicators. Wondering what the foreclosure market share will do in the future? Then monitor what percentage of new listings are in distress, because yesterday’s new listings are tomorrow’s closed sales. Buyers can only purchase what’s for sale on the market, so it’s logical to examine new listings in order to get early insights on future sales patterns.
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If you’re a real estate professional and belong to an MLS that subscribes* to MarketStats by ShowingTime, you already have access to useful reports and charts for every situation.
For MLS and association staff who need to quickly generate reports and charts that summarize local market activity, MarketStats by ShowingTime can help. Contact us for more information.
*MLSs and associations subscribe to MarketStats by ShowingTime to provide ready-made statistical tools for members. MarketStats is currently sold only to MLSs or associations.