Email When Comparing Days On Market (DOM) For Different Communities, Zip Codes, And Neighborhoods, The DOM Can, And Often Times Does, Indicate Different Levels Of Desirability:
-
High Demand = Faster Sales: If homes in one ZIP code sell much faster, it's often because more buyers are interested, suggesting higher demand and greater perceived desirability.
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Perceived Value: Short DOM usually correlates with areas that offer better schools, safety, amenities, or commute times — qualities that make them more attractive.
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Market Momentum: A shorter DOM often reflects a hotter market, where properties are competitively priced and buyers are eager to move quickly.
But Days On Market Alone Isn’t Fool Proof:
Several factors can distort what DOM actually tells you:
|
Factor |
Impact |
|
|---|---|---|
| Overpricing | In less desirable areas, sellers may overprice homes, inflating DOM. | |
| Investor Activity | In some “hot” areas, especially when interest rates are atypically low, high investor presence can reduce DOM artificially. | |
| Home Price Range | The top 10-25% price point wise tends to stay on market longer regardless of desirability. | |
| Inventory Levels |
|
Small Sample Size Can Skew Averages A community with very low inventory might have shorter or longer DOM simply due to fewer sales, not less demand. Example: If 3 homes sold in a month and one took 90 days while the others took 15 days, the average DOM jumps to 40 days — even though most sold quickly. Inventory Bottleneck In high-demand, low-inventory areas, buyers might be waiting for the "right" property. If the few homes listed don’t match their needs (wrong layout, price, etc.), they sit longer, not because demand is weak, but because supply isn't a good fit. Pricing Mismatch In low-inventory markets, some sellers may test high prices, assuming demand will carry the sale. If they overshoot, the home sits — again increasing DOM. Timing Effects In tight markets, homes may enter and exit quickly, and what's left are the stale listings. So when you look at DOM, you're mostly seeing what hasn’t sold yet, which inflates the average DOM. |
How to Use DOM Insightfully:
-
Compare DOM + Sale Price Trends: Desirable areas often show low DOM and rising prices.
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Look at DOM by price tier: A long DOM in the $2M+ range might be normal in a great area.
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Pair with list-to-sale price ratio: A low DOM and high % of asking price suggests strong demand.
Bottom Line:
Yes, large differences in DOM between ZIP codes can reflect greater or lesser desirability — still to be certain, any differences should be interpreted in context by Mitch as your REALTOR, alongside pricing trends, inventory, and local market conditions. If you want to take a deeper dive into How The Market Is Today in the Greater Indy Area's and communities then Mitch helps with that too!
About Mitch
Mitch leverages his local expertise, combined with his meaningful business and life experiences, and decades of professional leadership and growth in the construction and technology industries to contribute to his success as one of Greater Indy's Top REALTORs.
Mitch is committed to helping change the lives of his clients as they start their next chapter, by making it easier, more enjoyable and more profitable for his clients that design, build, buy, and sell their home, condo, townhouse or investment property!
Or Select Another Greater Indianapolis Area To See How The Real Estate Market Is For Houses, Townhouses & Condominiums
Regardless Of The Direction... Mitch Can help U Make The Right Move!
Find Out About Recent Market Activity If You Are Considering Buying Or Selling!
Generally Speaking What Goes Into The Value Of A Property
1/3 Is About The Property Itself: The Location, Condition, Updates, Bed & Bath Count, Size, Age & All Features
1/3 Is About Similar Places For Sale A Buyer Could Also Buy, At The Same Time, In The Same & Similar Areas
1/3 Is About What Similar Properties, In The Same Or Similar Areas, Have Sold for In The Last 6-12 Months
Real estate values are not like a ten-dollar bill that is worth $10 regardless of if it’s crisp and brand new, or if it’s twenty years old, dirty and torn. Neither the condition of the bill in your hand, the condition of other ten-dollar bills, nor the location of where you are holding the bill will change its value! If the value of real estate was also this precise and exact, just like the value of a dollar bill, then there would frankly be no need for real estate agents!
When you are thinking about buying or selling accurately evaluating the value of a house, townhouse, or condominium is a complex calculation that leverages years of experience and expertise like Mitch has, as one of the Top REALTOR's in the Greater Indy area! So let's start at the very beginning - with the RIGHT price! And the best way to find the RIGHT price is to ask Mitch.
What Is A Greater Indianapolis Property Worth
For Sellers, Get An Even More Precise Valuation Of Your Greater Indy Property, After You Have Completed The 1st Above... Feel Free To Share Additional Details Here
The 4 Most Common Ways To Determine The Value Of A Property, From The Highest Accuracy (4 stars) To The Least Accurate (1 star)
Comparative Market Analysis (CMA)
This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
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This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby.
A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.
An Appraisal
State-licensed appraisers will walk through a property and write an official appraisal report. While appraisals offer a little protection for buyers regarding the value of a property, the customer for the appraiser is the mortgage lender not the buyers. Banks typically require appraisals when refinancing your home, or getting a mortgage for a new home, to minimize the lender’s risk by making sure the bank is loaning no more than what the property could be resold for if the buyer was unable to repay their mortgage loan.
Instant Online Value Estimators
The Iron Triangle Of Service: Good, Fast, And Cheap -- PICK TWO. You Can Never Have All Three, As The Saying Goes!
Online Value Estimators are Fast and Free... And Free is the ultimate definition of cheap! So, since you can NOT have all three, and these online instant valuations are Fast and Free, then that means these Estimators can NOT also be Good!
There are many real estate and lending websites offering estimators out there. You can use this if you want a general estimate of your home may be worth. While these can help you decide if it’s worth considering selling or refinancing, these sites tend to dramatically undervalue or overvalue property values. So, using these when selling or purchasing a new place could create unrealistically high or unreasonably low expectations that could cost you thousands of dollars as both a seller or a buyer!
Price Per Square Foot Calculations
Price per square foot calculations are often used by sellers, buyers and unfortunately even by many real estate agents to determine the value of a property in comparison to other recent sales. This approach divides the sale or list price by the above ground square feet to arrive at a price per square foot.
If you are comparing to identical floor plans, with identical finishes and features, built at the same time, by the same builder on lots next to each other and both places have continued to have identical updates, then this approach might yield a meaningful value. However, this is rarely the case since price per square foot calculations do not reflect the many differences in properties like, bed and bathroom configurations, land value and location, views, garage spaces, finishes, updates and improvements, the year the place was built or any of the hundreds of differences between homes.
Mitch Refers To This Calculation As Only Pricing Validation, NOT Pricing Valuation!
Once a property CMA has been completed this calculation can be used to determine if a property has been overimproved or is overpriced within the neighborhood, development or area. If the price per square foot, based on a proper CMA, is dramatically higher than similar nearby places then the property is likely overimproved! Additionally if the price per square foot, based on the CMA, is dramatically lower than the price per square foot based on the list price, then the property is likely overpriced.
USE THESE RESOURCES & TOOLS TO HELP YOU MAKE THE RIGHT MOVE IN THE GREATER INDY AREA
Buyers
Thinking of buying a greater Indianapolis home, condominium or townhouse... While it's easy to see the asking price, let Mitch show you what the property should sell for based on other comparable places in your favorite greater neighborhood or development.
Sellers
Thinking of listing your greater Indy home, condominium or townhouse... Are you curious to know what your place should sell for along with the selling prices, days on market, and list price to sales price ratios of other places in your neighborhood, development or area?
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