1. What is Months of Inventory (MOI)?

Months of Inventory (MOI) is a key real estate metric that measures how long it would take to sell all current active listings at the current sales pace. It indicates market balance between supply and demand.

2. How Does the Calculator Work?

The calculator uses the MOI formula:

Where:

• \( Active Listings \) — Number of properties currently for sale
• \( Monthly Sales \) — Number of properties sold in the past month

Explanation: The formula calculates how many months it would take to sell all available properties if sales continue at the current rate.

3. Importance of MOI Calculation

Details: MOI helps determine market conditions - seller's market (low MOI), balanced market (medium MOI), or buyer's market (high MOI). It guides pricing strategies and market timing decisions.

4. Using the Calculator

Tips: Enter the total number of active listings and monthly sales. Both values must be positive numbers, with monthly sales greater than zero for valid calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does different MOI values indicate?
A: Below 4 months = seller's market, 4-6 months = balanced market, above 6 months = buyer's market.

Q2: Why is MOI important for buyers and sellers?
A: Buyers can identify favorable markets, sellers can price competitively, and investors can spot market trends.

Q3: How often should MOI be calculated?
A: Monthly calculation provides current market insights, while quarterly trends show market direction.

Q4: Are there limitations to MOI?
A: MOI doesn't account for new listings, price changes, or seasonal variations. It's a snapshot metric.

Q5: How does MOI affect pricing strategy?
A: Low MOI allows for premium pricing, high MOI requires competitive pricing to attract buyers.