How do I determine the months of inventory in my market place.
I know you said on the last training, you take number of inventory divided by sales rate. I don't understand what these numbers are?
Is it the number of homes on the market, lets say at the end of April divided by the number of homes sold in that same month?
about 2 years ago
Yes,months supply or housing inventory is calculated by taking the number of homes listed as Active in the market and divide it by the previous month's home sales.
So if there are a hundred homes for sale, and 25 sold last month, there would be 4 months supply.
We find it best to keep a spreadsheet so that you can easily compare housing inventory or various time periods and share that information with customers.
It makes good blogging and social content as well.