Months of Inventory June 09-Weston Florida

There are no set rules to determine how a real estate market will perform in the future, the industry uses Months of Inventory based on Closed Sales (total inventory divided by the number of houses sold per month) as a guideline.  Months of Inventory based on Closes sales is a much powerful indicator that the traditional “Days on the Market” used to measure the length of time a property may remain on the market.

Seller’s Market or Buyer’s Market?
Months of Inventory also let’s us track if the market is balanced, leaning toward sellers or buyers, in a concrete way. If the market keeps on that trend of activity it calculates the number of months it would take for the market to deplete the currently active inventory. It is generally agreed that areas with 6 to 9 months of inventory are considered to have a normal or balanced market. Areas with more than 9 months of Inventory are referred to as buyer’s markets, while areas with less than 6 months of inventory are considered to be a seller’s market.