How do you determine average days on market?

To determine the average days on market, the correct method involves adding the total number of days on market for each listing and then dividing that sum by the total number of listings. This provides a comprehensive view of how long properties have been on the market before selling.

Using this approach allows you to accurately calculate the average by taking into account every listing, including those that took longer and those that sold quicker. The resulting figure is a useful metric that can help assess market trends, inform pricing strategies, and guide sellers on expected times to sell within a given market.

The other options do not accurately capture the correct methodology. Simply multiplying total listings by days does not provide any meaningful insight into how properties are performing on the market. Counting only the days of sold listings ignores properties that are still unsold and doesn't reflect the full market activity. Likewise, using the median of days on market provides a different statistic that can be useful but does not yield an average, which is what the question specifically asks for. Thus, the method of summing all days on the market of each listing and dividing by the number of listings is the most precise way to find the average days on market.