Why is housing inventory an important statistic to track on the market?
Housing inventory is measured in months of inventory. This is basically how many months it would take for all of the available homes to sell if no new homes were listed on the market.
A good housing inventory would be about four to five months of houses on the market. If that number is smaller than four, it means that the home buyers are dominating the market and that there are relatively few sellers. In that market, home sellers have the advantage. A number over five would mean that buyers have the advantage in the market.
How does housing inventory affect your home’s value? While your home’s value is affected by size, location, and condition, a tight real estate market—or one with a lower inventory—will always drive prices up. It’s the law of scarcity.
If you’d like to know the current housing inventory in your area or have any other questions related to real estate, please give me a call or send me an email. I’d be happy to help you!