Picking The Strength of The Market: How to Tell if the Property Market is Hot or Cold

You’ll often hear people talking about how “hot” or “cold” the property market is, but how do you actually know what the market is doing?

One of the best indicators of market strength is "median days to sell" - the average time it takes for a property to sell from when it’s listed.

Liquidity: Turning Assets Into Cash

Some assets are liquid, meaning they can be quickly turned into cash. Shares in the S&P 500, for example, can be sold within days.

Cash is the most liquid asset of all; it’s instantly spendable, which is why financial advisors often recommend keeping an emergency fund on hand.

Real estate, however, is an illiquid asset. Selling a property usually takes weeks or even months, and in tougher markets, that time frame can stretch out further.

This is where "days to sell" becomes a crucial insight into the market’s health and an indicator of whether a market is hot or cold.

What Days to Sell Tells Us

When the market is hot, properties sell quickly, which means real estate is more liquid. When it’s cold, listings sit longer.

For example, during the Global Financial Crisis of 2008, the New Zealand property market slowed dramatically.

Median days to sell exceeded 50+ days across Auckland, Wellington, and Christchurch. Contrast that with the boom of 2021, when properties were selling in under 30 days in those same cities.

These swings highlight how market cycles work - periods of heat followed by cool-downs.

Knowing how long it is taking for listings to sell is generally a good indicator of market strength

Why This Matters for Investors

If properties are selling fast, vendors have less incentive to negotiate, and bargains are rare.

But in a quieter market, properties sit longer, sellers become more motivated, and opportunities for discounted purchases increase.

By monitoring median days to sell, you gain a clear, data-driven view of market strength.

Different cities follow their own cycles, so understanding local data is key to timing your investment moves.

How to Use This Insight

• Check local data: Most real estate websites and reports publish median days to sell by region
  

• Ask your advisor: They can tell you how long a property has been sitting on the market
  

• Act strategically: In slower markets, negotiate hard. In hotter markets, focus on securing financing quickly so you can compete
  

Understanding "days to sell" is a simple but powerful way to stay ahead of the market and position yourself to snag your next investment property at the right time.

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