I’m fortunate to have the opportunity to talk with MLS leaders who represent the largest 25 MLSs in the country. We each have our individual challenges and, of course, there are challenges we share, especially now.
As we navigate our way through an unprecedented pandemic, which now includes marketing properties as stay-at-home orders are in place, Days in MLS (DIM) has emerged as a shared hot topic, with brokers, agents, and MLS leaders across the United States asking, “Should we suspend the Days in MLS calculation?”
The overwhelming answer from our MLS peers and the Council of Multiple Listing Services (CMLS) is “no.” Manipulating DIM would distort the accuracy of the data and portray a false picture of the market so many rely on from our MLS systems. REcolorado believes it is our responsibility to maintain the integrity of our market data now and into the future.
Please read on as I connect the dots.
First, it is helpful to define DIM. Simply put, REcolorado’s definition of DIM (formerly Days on Market, or DOM) is the number of days a listing is on-market within the MLS system. For listings in REcolorado Matrix, Days in MLS starts counting when the listing is put in Active status and stops when the listing’s status is moved to Pending.
Your clients likely view the DIM calculation as a fast way to determine which homes are newest to the market. Day to day, you rely on DIM to predict how long a property might take to sell, how the market is performing in your area, or to show how quickly the properties you list sell. Accuracy is important here. But that’s just half the story.
The DIM calculation is used for much more:
- Market Stats – In local and national housing market statistics, DIM is a valuable indicator of how the market is performing. It shows the ramp up and cool down of the annual home buying and selling season, local market trends, and how the Colorado market is performing compared to other regions of the US.
- Analysis – DIM is used by statisticians for historical analysis. Experts use the calculation to look back at events, like the 2008 financial crisis, to understand the effects on the market.
- Systems and Tools – Data from MLS systems, including DIM, are used by data scientists for algorithms that calculate values, for price opinions, and in tools you rely on every day to serve your clients.
Manipulating DIM now will degrade the integrity of our listing data. If we chose to artificially lower the number of days it takes to sell a property now, we would be doing you, your clients, and the industry a disservice. When we look back on the 2020 pandemic, we need to be able to use the data to see an accurate reflection of the market and not a misleading picture.
So, what can you do now to serve your clients? More than ever, consumers are relying on you for the expert advice they need to navigate the market. To give them guidance, you need accurate data. Use your REcolorado resources to get this data and understand the market. Then, pass that knowledge on to your sphere. You can look to the REcolorado Professionals Blog and the REcolorado.com Market Watch for the information and accurate market statistics we produce monthly and will soon deliver weekly.
Real estate brokers are some of the most innovative and resourceful professionals out there. REcolorado is here to support you. You can count on us for the tools and information you need to serve your clients and grow your businesses. Rest assured; we will get through this together.
Vice President of Industry Relations