Definition
The total number of residential properties available for sale in a market at a given time. Inventory levels indicate market balance and affect your options and negotiating power.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Inventory is measured in months on market (total inventory divided by average monthly sales). Low inventory (under 3 months) indicates a seller's market, while high inventory (over 6 months) indicates a buyer's market. Inventory levels vary seasonally and by location.
Pro Tip
Monitor inventory levels in your target market. When it drops, competitive conditions increase—act quickly.
Example
The market had 4 months of inventory, with 800 active listings and average monthly sales of 200 homes.