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Days on market have been climbing since 2022. Vanessa Anderson says that's about to flip, and she's got the data to prove it. In this Hot Takes episode, Randall sits down with Vanessa, CEO of PropertyTek, the parent company of Tenant Turner and ShowMojo, to unpack fresh Q1 leasing data and what it means for this year's busy season.
Days on market are set to drop
Vanessa's team had just received their Q1 results for an upcoming data talk, and the trends point to a drop in days on market this leasing season. She calls that miraculous, because days on market have been on an incline since 2022, coming out of COVID.
Rent prices moved for the first time in two years
In PropertyTek's data set, rent prices held steady for eight consecutive quarters. Then they dropped in Q1. That pushes pricing toward a more market-clearing level, and it's resulting in a drop in days on market.
Why a rent drop is a good sign
It's a positive indicator, not a red flag. Vacancy has been rising for the last few years. When rental rates help supply and demand reach equilibrium, more vacant units clear, days on market go down, and the leasing market gets healthier.
A real inflection point
Interest rates remain elevated and probably won't come down for a long time, so sales continue to be soft and slow. That makes an early indicator of vacancy going down worth noting. Vanessa says she's wondered for four or five quarters whether this was an inflection point. Now the metrics are actually changing, and she feels more confident saying it.
It also goes beyond a seasonal explanation. Compared to last year, days on market are declining too. Vanessa calls these exciting early indicators and expects a busier leasing season.
The one metric to focus on
As leads and activity pick up, the question is how effectively you convert them and move them through your funnel. Vanessa says focusing on lead-to-lease conversion rates can set you apart as the market improves.
Ready for a busier season? See how Rentvine helps you capitalize on the leasing season, explore our leasing and marketing tools, or schedule a demo.
