If you are buying property in Sydney, you have probably come across the term Days on Market (DOM) while researching listings.
A property that has been advertised for 10 days can feel very different from one that has been sitting on the market for 90 days.
But does a high number of days on market automatically mean the property is overpriced?
Not necessarily.
Days on Market is a useful market signal, but it should never be used on its own to decide whether a Sydney property is worth buying.
Understanding what DOM actually tells you – and what it does not – can help you identify potential negotiation opportunities while avoiding assumptions that could cost you money.
What Are Days on Market?
Days on Market refers to the amount of time a property has been actively advertised for sale before being sold or taken off the market.
For example:
- A property listed on Monday and sold within two weeks may have a relatively low DOM.
- A property advertised for several months may have a significantly higher DOM.
- A property that has been withdrawn and later relisted may appear to have a shorter current marketing period, depending on how the data is recorded.
The important point is that DOM measures marketing time not necessarily property quality.
A property can have a high DOM for many different reasons.
Does a High Days on Market Mean the Property Is Overpriced?
It can, but it is not proof.
A property may remain on the market because the asking price is above what buyers are currently prepared to pay.
However, there can be many other explanations.
For example:
1. The Vendor Started Too High
One of the most common reasons a property remains unsold is an unrealistic initial price expectation.
The agent may have initially marketed the property at a price that attracted plenty of enquiry but very few serious buyers.
After several weeks, the vendor may become more flexible.
This can create an opportunity for a buyer who understands the property’s actual market value.
2. The Property Has a Smaller Buyer Pool
Not every property appeals to the same number of buyers.
A three-bedroom family home with good parking and outdoor space may attract a much broader audience than a property with an unusual layout or limited parking.
A property can therefore have a longer DOM without necessarily being poor value.
3. The Property Has an Issue Buyers Don’t Like
Sometimes the market is telling you something.
Potential concerns could include:
- Poor natural light
- Busy road exposure
- Difficult floor plan
- Lack of parking
- High strata levies
- Significant upcoming strata works
- Poor building presentation
- Limited storage
- Noise
- Location-specific issues
- Renovation requirements
A property with a long DOM deserves investigation – not an automatic rejection.
4. The Vendor May Not Be in a Hurry
Some vendors are prepared to wait for their preferred price.
In this situation, a property could remain available for an extended period even though the asking price is not dramatically out of line with comparable properties.
This is why understanding the vendor’s circumstances can be just as important as looking at the number of days on market.
Low Days on Market Doesn’t Always Mean Good Value
This is equally important.
A property selling quickly does not automatically mean it was a bargain.
It could simply mean:
- The property was priced aggressively.
- Buyer demand was strong.
- The property was marketed effectively.
- Multiple buyers were competing.
- The vendor accepted an offer quickly.
- The property was particularly desirable.
A fast sale tells you there was strong buyer activity.
It does not tell you whether the buyer paid below, around or above fair market value.
How Sydney Buyers Should Use Days on Market
Think of DOM as a starting point for investigation, rather than a valuation tool.
For example:
“This property has been listed for 72 days. Why?”
That is a much better question than:
“It’s been listed for 72 days, so it must be overpriced.”
You then need to investigate the reasons behind the number.
Look at Comparable Sales
Recent comparable sales are usually far more useful for assessing value than the advertised price.
Compare properties with similar:
- Location
- Property type
- Land size
- Building size
- Bedrooms
- Bathrooms
- Parking
- Condition
- Age
- Features
The goal is to establish what comparable properties have actually sold for.
Look at the Price History
A property’s price history can reveal important information.
For example, a property might have:
Initial asking price: $1.25 million
After 30 days: Price guide reduced
After 60 days: Further price adjustment
Current guide: $1.10 million
That tells you considerably more than simply knowing the property has been advertised for 60 days.
It may indicate that the vendor’s original expectations were too high and that the market has not responded at the earlier price.
Watch for Relisting
Sydney buyers should also be careful when interpreting DOM data after a property has been withdrawn and relisted.
A property that appears to have been “newly listed” may have actually been marketed previously.
This is one reason it can be useful to look beyond the current listing and investigate the property’s recent sales and marketing history.
Days on Market Can Create Negotiating Opportunities
A property that has been sitting on the market for an extended period may provide a different negotiating environment from a property that has just launched.
But don’t assume the vendor will automatically accept a low offer.
The vendor may have:
- Already rejected other offers
- A minimum acceptable price
- Significant equity
- No urgency to sell
- Another property purchased
- A specific settlement requirement
The key is understanding why the property hasn’t sold.
If the property is genuinely worth $1.1 million based on comparable sales and the vendor is asking $1.2 million, the DOM may become useful leverage.
But if comparable properties are selling around $1.2 million, simply pointing to a high DOM does not make a $1.05 million offer realistic.
DOM Can Mean Different Things in Different Sydney Markets
Sydney is not one single property market.
Buyer behaviour can vary considerably between suburbs, property types and price brackets.
For example, the typical marketing period for:
- An apartment
- A freestanding house
- A townhouse
- A prestige property
- A development-site property
may be very different.
Even within the same suburb, the buyer pool for a $700,000 apartment can be completely different from the buyer pool for a $2 million house.
That means DOM should ideally be assessed against relevant local and property-type benchmarks.
What Should Buyers Look At Alongside Days on Market?
When assessing a property, consider DOM together with:
1. Recent Comparable Sales
What have similar properties actually sold for?
2. Price Changes
Has the asking price changed since the property was first advertised?
3. Buyer Competition
Are there multiple interested buyers or offers?
4. Property Condition
Does the property require immediate repairs or renovation?
5. Location
Are there factors affecting demand, such as traffic, noise or surrounding development?
6. Strata Information
For apartments and townhouses, examine levies, financial records, building defects and planned capital works.
7. Vendor Motivation
Does the vendor need to sell, or are they comfortable waiting?
8. Market Conditions
Is the broader market experiencing increasing, stable or declining buyer demand?
No single metric provides the complete picture.
A Long DOM Isn’t Necessarily a Bad Thing
For buyers, one of the biggest mistakes is assuming:
“Nobody has bought it, so something must be wrong with it.”
Sometimes the opposite can be true.
A property may have been overlooked because of:
- Poor photography
- Weak marketing
- An unrealistic initial price
- An unusual presentation
- Limited buyer demand for a particular layout
- A vendor who started with unrealistic expectations
A property that other buyers have overlooked may sometimes become an opportunity – provided the underlying property and price stack up.
A Short DOM Isn’t Necessarily a Reason to Panic
The opposite mistake is allowing urgency to take over.
If a property has only been on the market for three days and the agent says there is enormous buyer interest, that does not necessarily mean you should immediately increase your offer.
You still need to establish:
What is the property actually worth?
Competition can create emotional pressure, particularly when buyers believe they may miss out.
A disciplined buyer should understand their value range before making an offer.
The Bigger Picture: DOM Is a Clue, Not a Verdict
Days on Market can help answer an important question:
“How has the market responded to this property at its current price and presentation?”
But it cannot answer:
“What is this property worth?”
That requires a broader assessment.
For Sydney property buyers, the most useful approach is to combine DOM with comparable sales, property condition, location, price history, market conditions and the vendor’s circumstances.
The Bottom Line
Days on Market is a useful piece of information – but it is only one piece of the puzzle.
A high DOM can indicate an opportunity, but it can also indicate an underlying problem.
A low DOM can indicate strong demand, but it does not automatically mean the property is good value.
The important question isn’t:
How many days has this property been on the market?
It is:
Why has it been on the market for that long, and what does the evidence tell us about its true market value?
That is where proper property research and due diligence become important.
Buying Property in Sydney?
At Truth Property, we help Sydney buyers research properties, assess comparable sales, conduct due diligence and negotiate with selling agents.
Our approach is focused on helping buyers make informed purchasing decisions rather than simply finding a property and encouraging them to buy it.
Buy Smarter. Negotiate Better.
If you’re considering buying a property in Sydney and want professional assistance with the search, due diligence and negotiation process, you can learn more about our buyers-agent services through Truth Property.
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