Definition
The number of homes for sale in your market—supply relative to demand. Low inventory favors sellers; high inventory favors buyers. Inventory levels guide pricing and marketing strategy directly.
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Low inventory (under 3 months supply) favors sellers; high inventory (over 6 months) favors buyers. Inventory levels guide pricing and marketing strategy.
Pro Tip
Monitor inventory trends. Low inventory indicates time to sell; high inventory indicates challenges.
Example
Market with 2.5 months inventory indicating strong seller's market.