In California, one of the states hardest hit by the disease caused by the novel coronavirus — COVID-19 — the MLS board has opted to pause the days on market (DOM) count for current listings. The rationale is that with slower foot traffic thanks to shelter-in-place orders, DOM is not necessarily an accurate indicator of the desirability of a property. Therefore, by pausing the DOM, there’s less pressure on agents to violate shelter-in-place orders.
“This action is intended to relieve pressure on sellers and buyers during the coronavirus pandemic and to underscore public compliance efforts during the shelter-in-place. The health of the public is priority number one. We are actively reviewing policies to identify ways to support buyers, seller, agents, and brokers in these unprecedented times. We continue to collaborate with other MLS listing platforms for best practices under the impact of coronavirus.”Karl Lee, MLS Listings Chairman
For buyers, DOM is a number often used to see whether a seller is ready to wheel and deal. However, is it still relevant? And should more MLS boards put DOM on pause?
That’s what several North Texas real estate professionals have asked us here at CandysDirt.com. So we reached out to Bill Head, director of communications for MetroTex Association of Realtors.
“The DOM and CDOM calculations in Matrix are extremely intricate and include several business rules,” Head told us by email. “Any attempt to ‘pause’ the days on market creates a significant programming problem and would result in a false reflection of our current situation. If the days on market calculations were frozen we would experience irreparable problems when the calculations start again.”
So why, considering the state of the market, is DOM important?
“Listings and their marketing should be transparent to the consumer. Days on market calculations for an “active” listing should not be altered if the property is available to be sold and is being actively marketed,” Head elaborated. “MLSs should utilize RESO’s standard statuses within their systems and provide clear guidance to members on how to best classify listings within existing rules. Current and historical data accuracy requires that we document today’s marketplace activity accurately.”
What do you think?