The Impact of Days on Market on Home Sale Prices: A Data-Driven Analysis

By Venturi Realty Group

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When selling a home, one of the most critical factors influencing the final sale price is the days on market (TOM)—the duration a property remains listed before it sells. A recent discussion between real estate professionals Tracy and Tego Venturi sheds light on this topic, revealing a clear correlation between longer market times and significant price reductions. Backed by data and industry insights, their analysis provides valuable lessons for homeowners and realtors alike. This blog explores the key findings from their discussion and what they mean for sellers in today’s market.

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📊 The Data: How Time on Market Affects Sale Prices

Tego Venturi, prompted by a fellow realtor’s inquiry, conducted a deep dive into local market data, focusing on homes sold in the Albuquerque area over the past six months. Using an average sale price of $429,000, the analysis revealed a consistent pattern:

• Homes sold within the first 30 days were typically discounted by only 1% off the original list price, achieving 99% of the asking price.
• Homes sold between 30 and 60 days saw a steeper discount of 4.75%, marking the largest drop in price reduction within this timeframe.
• Homes on the market for 120 days (about four months) experienced an average price reduction of 8.5%, equating to a significant loss in potential profit.

These figures highlight a universal truth in real estate: the longer a home sits on the market, the more likely it is to require substantial price cuts to attract a buyer. Notably, this trend is not exclusive to slower markets but holds true across various market conditions over time.

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🔍 Correlation vs. Causation: Why Do Prices Drop?

A key point from the Venturis’ discussion is the distinction between correlation and causation. While time on market is strongly correlated with price reductions, it is not necessarily the cause. Instead, extended TOM is often a symptom of underlying issues, such as:

• Overpricing: Homes priced above market value for their condition and location tend to linger, as buyers perceive them as less competitive.
• Condition and Location: Properties that require significant repairs or are in less desirable areas may struggle to attract buyers, leading to longer market times.
• Ineffective Marketing: Poor-quality photos, limited online visibility, or lack of promotional efforts (like open houses, floor plans, or paid marketing) can reduce a home’s exposure, causing it to sit longer.

Tego emphasized that the first two to three weeks are critical for capturing buyer interest. The National Association of Realtors (NAR) supports this, noting that homes make their strongest impression during this initial period. As Tego put it, “That’s when buyers are seeing the new listings. If you miss that window, activity drops, and you risk having to cut the price later—and buyers notice.” A well-priced home with professional marketing—high-quality photos, virtual tours, and active promotion—can capitalize on this window to secure top-dollar offers.

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🚨 The Perception Problem

Extended time on market creates a perception issue among buyers. As Tracy noted, “When a home’s been on for 30 days or more, buyers start to wonder, ‘What’s wrong with it?’ Even if there’s nothing wrong, the time alone creates that doubt.” For example, Tracy recounted a Corrales home listed for 286 days that appeared desirable based on photos and description, but raised red flags due to its prolonged market time. This skepticism can force sellers to lower their price to regain buyer interest.

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🛑 The Myth of Waiting for the “Right Buyer”

A common refrain from sellers is, “I’m not in a hurry; I’ll wait for the right buyer at my price.” However, the data debunks this strategy. Tego explained, “Waiting rarely results in getting your price unless it’s an extremely unique property. Most buyers simply won’t pay above market value—and waiting just leads to deeper discounts later.” A Zillow study Tego cited found that homes requiring price cuts were 62% more likely to remain on the market over 60 days, reinforcing the importance of pricing competitively from the start. As Tego summed it up: “It’s not like if you wait long enough, the right buyer magically appears. You’re more likely to just wait a long time and end up taking less.”

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✅ Key Takeaways for Sellers

The Venturis’ analysis offers actionable advice for homeowners looking to maximize their sale price:

• Price Right from the Start: Work with a realtor to set a competitive list price based on recent comparable sales, considering your home’s condition and location. Overpricing often leads to missed opportunities and lower net proceeds.
• Invest in Marketing: High-quality photos, virtual tours, floor plans, and active promotion (like open houses and paid ads) are essential to attract buyers early.
• Act Quickly on Adjustments: If your home isn’t generating interest within the first 30 days, consider a price reduction or marketing overhaul to avoid falling into the “stale listing” category.
• Understand Market Dynamics: While markets like 2021 saw homes sell in days, today requires more patience and strategy. The principle of pricing correctly from day one remains timeless.

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📌 Conclusion

The relationship between time on market and home sale prices is clear: the longer a home sits, the more likely it is to sell at a discount. By pricing strategically, investing in robust marketing, and addressing issues early, sellers can avoid the pitfalls of extended market time and maximize their return. As Tego and Tracy Venturi’s analysis shows, the data doesn’t lie—getting it right from the start is the key to a successful home sale.

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📉 Albuquerque Real Estate Market Update – May 2025: Prices Dip Slightly, But Demand Holds Steady

By Tego Venturi | Venturi Realty Group

 

What Do The Numbers Say?

As we roll into June, the Albuquerque housing market continues to show signs of normalization—but don’t let the national headlines fool you. While some parts of the country are experiencing bloated inventory and sluggish sales, Albuquerque is following its own, more stable trajectory. Tego Venturi of the Venturi Group at Real Broker broke down the latest numbers from May 2025, revealing a market that’s cooling off from pandemic-era highs but still favoring sellers—especially in the sweet-spot price ranges.

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🏘 Inventory Is Up… But Still Below Normal

Albuquerque’s housing inventory increased to an average of 2,031 active listings in May, about 20% more than May 2024. However, that’s still 25% fewer homes on the market than the same time in 2019, the last “normal” year before the pandemic distorted everything. When it comes to supply, the 2.4 months of inventory still leans strongly toward a seller’s market. A balanced market typically falls around 5 months—but in today's post-pandemic landscape, even that benchmark may be outdated. High-demand homes are still attracting attention, and even occasional multiple-offer scenarios, but those bidding wars are no longer the norm.

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📉 Demand Slows but Remains Consistent

Closed sales were down 7.5% year-over-year, with 889 homes sold in May. While that’s the highest monthly total in 2025 so far, it still reflects a more tempered pace than what’s typical for this time of year. More telling is the pending sales data: with 914 homes going under contract, May activity was virtually flat compared to last year. And while weekly pendings plateaued through April and May, they’re still holding steady—a sign that demand hasn’t disappeared, it’s just more selective.

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⏳ Homes Are Taking Longer to Sell

The average days on market (DOM) hit 35 days, a 30% increase over last year, but nearly identical to May 2019 (34 days). The median DOM doubled year-over-year, from 7 to 14 days, reflecting a more patient buyer pool. Interestingly, homes under $250,000 sat longer—averaging 39 days on market. That price point often reflects homes needing updates or repairs, so longer timelines there may be tied more to condition than affordability.

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💰 Prices: A Nuanced Picture

The median price for single-family detached homes came in at $365,000, down nearly 2% from a year ago. But there’s a catch: the average size of homes sold was 6% smaller than last year (1,777 sq ft vs. 1,892 sq ft). That shift in size partly explains the dip in median price. To get a clearer picture, we turn to price per square foot, which rose to $216 median / $218 average, both up about 3.3% year-over-year. This shows modest but steady appreciation, even as median price appears to soften.

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📊 Price Range Matters – A Lot

Market dynamics vary sharply depending on price point:

• 🏠 $250K–$400K: Fast-moving with just 1.7 months of inventory
• 🏡 $600K+: Slower with 4.6 months of inventory (approaching a balanced market)

This variation makes pricing strategy more important than ever for sellers.

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🔮 Forward-Looking Indicators: Plateau or Pause?

Using weekly tracking data, the number of pending listings in recent weeks has flattened, not growing as we’d typically expect heading into summer. While not a drop, this lack of momentum suggests buyers are cautious, possibly due to interest rates, affordability, or simply fatigue from a volatile few years. Even so, median pending prices ticked upward to $379,500, about 2% higher than last year. And price per square foot pending sits at $217, also slightly up. The takeaway: homes are still appreciating—just more modestly than before.

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📽️ Watch the Full May 2025 Market Update

▶️ Click here to watch the full video with Tego Venturi

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📌 The Bottom Line

Albuquerque’s market is transitioning—not crashing. Yes, homes are taking longer to sell, and buyers are more measured. But prices are stable, inventory is growing but still tight, and the market remains in seller-favored territory, especially in the mid-range price bands. If you're thinking of buying or selling, it’s all about strategy, condition, and price point. Reach out to the Venturi Group for expert guidance tailored to today’s market realities.