Months of Inventory: Spotlight 78703

July 21, 2011 by · Leave a Comment 

The key statistic you need to use to show the current relationship between inventory and demand is a term called “Months of Inventory.” It is the number of homes for sale divided by the number of homes sold the month before. It is like an absorption rate and has always been a good way of analyzing changing demand and the number homes that can meet that demand. In “Average” markets it is normal to have about 6 months of inventory; home values are usually stable and prices rise slowly. Above 6 months of inventory, prices decline. Below 6 months of inventory, there is increased pressure to raise home prices.

Download our July Market Report to see the months on inventory by price ranges, areas, and zip codes.

Months of Inventory Spotlight: 78703

Jan: 9.08     Normal Buyers Market
Feb.: 7.23    Balanced Market
March:  6.5  Balanced Market
April: 4.5     Normal Sellers Market
May: 2.95    Extreme Sellers Market
June: 4.43    Normal Sellers Market

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