There are a lot of metrics that are used in real estate, and one of the most commonly cited among these is “Days on Market,” or DOM. Observers of the real estate market often reference DOM in analyzing the health of the current market, as observers can see how fast homes on the market are typically selling by looking to the DOM.
Mo Howard, West Virginia football player, prefers a different metric. Through the use of what Howard calls the two-month measure, he feels that he is able to get a better handle on the true health of the housing market than through the use of DOM. The belief is that DOM can be unduly influenced if a significant amount of new inventory suddenly comes onto the market. With the two-month measure, this is not the case.
Howard believes that the two-month measure is a better indicator and better reflects the true status of the real estate market. The metric simply measures the number of houses that have been on the market for a period of two months, as this tells much more about the market than the more frequently referenced DOM.
Leave a Reply