1. What Is Housing Inventory Months?

Housing Inventory Months 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 housing inventory formula:

Where:

• \( \text{Active Listings} \) — Number of properties currently for sale
• \( \text{Monthly Sales} \) — Number of properties sold in the past month
• \( \text{Months} \) — Time to sell all current inventory

Explanation: This calculation provides insight into market conditions - lower months indicate a seller's market, higher months indicate a buyer's market.

3. Importance Of Housing Inventory Calculation

Details: This metric helps real estate professionals, investors, and home buyers understand market dynamics, pricing trends, and optimal buying/selling strategies.

4. Using The Calculator

Tips: Enter the current number of active listings and monthly sales figures. Both values must be positive numbers greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a balanced housing market?
A: Typically 5-6 months of inventory indicates a balanced market between buyers and sellers.

Q2: What does less than 5 months inventory indicate?
A: Less than 5 months usually indicates a seller's market with rising prices and competitive bidding.

Q3: What does more than 7 months inventory indicate?
A: More than 7 months typically indicates a buyer's market with more choices and potential price reductions.

Q4: How often should this calculation be updated?
A: Monthly updates are recommended to track market trends and seasonal changes accurately.

Q5: Are there regional variations in inventory metrics?
A: Yes, different markets may have varying baseline levels, so local market knowledge is important for interpretation.