What is the relevance of 'Days on Market'?

As an agent one of the first things I look at in a listing is the Days on Market (DOM) number.

At the city or area level - the DOM is a good indicator of how well the market is doing or not doing. A low DOM is an indication of a Seller's market. Feb. 2008 for Central Toronto had an average DOM of 26 days. The hottest area in Central Toronto was C10 (roughly from Mt Pleasant Cemetery to Forest Glen and Yonge east to Bayview and West Don River north of Glenvale) with a DOM of 13 days. Contrast that to Feb. 2009. Central Toronto had a DOM of 43 days and C10 has a DOM of 37 days. Definitely more of a Buyers' market.

At the individual listing level it tells me how long the actual property has been listed. I use the number as a loose predictor of how much price flexibilty is in the listing. Obviously, when putting an offer on something that has only been on the market for a few days it is likely that the offer price will be fairly close or at the list price. However, when something has been on the market for 3 months - it is likely that we will go in at a lower price.

When discussing listing a house and using the DOM stat - it is a good predictor of how long it will take the house to sell if properly priced. I always pull the individual listings and manually calculate the DOM - since the number can be falsely low. Some agents list a house for a few weeks or months and if it doesn't sell, terminate the listing and re-list the house. The DOM starts again from day 0 and does not accumulate from the previous time it was listed. A definite flaw in the system. A good agent will always ensure the stats are accurate and will do manual calculations if necessary, and will not rely solely on published stats

So... when going to see a listing with your agent, or looking at an open house - ask about the Days on Market, and whether or not this is the first time it has been listed. Not only will you sound knowledgeable, but this is helpful information when putting in an offer.

Overview of the Energy Audits

“Premier Dalton McGuinty is defending a plan to saddle homeowners with a mandatory $300 energy audit as part of his Green Energy Act, dismissing critics who say this is yet another way to tax overburdened residents. Forcing people to conduct audits is a good idea, McGuinty said, because it will allow buyers to know their energy costs.” The Canadian Press

Briefly, an energy audit is an assessment done to determine the energy efficiency of your home and where you can improve. The test costs $300 but can show you how you can save up to 30% of your annual energy bill, apply for government grants and reduce your greenhouse gas emissions. You can apply for a Ontario Home Energy Audit rebate to get up to $150 back with a certificate from a certified energy auditor. I feel that 'voluntary energy audits are great and the benefits are easily quantified.

As a Toronto real estate agent – I have many concerns with the term mandatory. Sellers are already struggling with lower house prices, a depressed real estate market, the negative effects of the Toronto Land Transfer tax and a weak economy. They do not want to have to do a mandatory energy audit in order to sell. If Mr. McGuinty wants buyers to know their energy costs - wouldn't the simplest way be to show them the heat and hydro bills for the past two years? Have I missed something? If the Buyers want to determine how to reduce those costs – they can do an energy audit once they own the home.

Some of the tests that are done are checking: your home’s insulation levels, the efficiency of your heating and cooling equipment, the standby power loss of your appliances, air leakage spots in your home and more. You end up with a list of energy improvements you can make.
If you do the improvements within 18 months and have another Energy audit – you can apply for all types of Ontario and federal ecoENERGY grants for various items such as:
Attic or roof — insulation up to $1,200
Air sealing — for your home up to $600
Windows & doors — $60 for each replacement unit
Toilets — $100 for each replacement unit
Furnaces — high-efficiency gas or oil, up to $1,000
Central air conditioners — replacement $400
Hot water heaters — condensing gas or propane $606

For more information on Energy audit specifics– go to : www.mei.gov.on.ca.wsd6.korax.net/english/energy/conservation/?page=home-energy-audit-and-retrofit-rebate-programs or google: Ontario Energy audits (as of writing there were 97,200 entries to choose from).