Months supply of inventory is one of the most commonly cited measurements used to describe the housing market. But what is it? In simple terms, it’s how long it would take to sell all of the houses currently on the market – if no new listings were added. It not only measures inventory (the number of homes available), but also how active buyers are in the market.
A six months supply is considered balanced. Anything more indicates a buyer’s market, meaning buyers may have more leverage thanks to increased inventory. Anything less indicates a seller’s market, which swings in favor of sellers because of lower inventory and higher competition.
But real estate is complex, and the numbers don’t always paint the full picture. Even in areas where there are fewer homes on the market to choose from, seasonal price drops may help buyers score a deal. What Inventory Looks Like in your neighbourhood This Fall?