If you’re thinking about selling your home, you’ve probably heard the term “months of supply” thrown around. But what does it actually mean?
Months of supply measures how long it would take to sell all available homes at the current sales pace. It’s one of the clearest indicators of whether we’re in a buyer’s or seller’s market.
Here’s the breakdown:
– Less than 5 months = Seller’s market (low inventory, more competition among buyers)
– 5-6 months = Balanced market
– More than 6 months = Buyer’s market (more inventory, buyers have negotiating power)
Right now, inventory levels are rising in many markets across the country. According to recent NAR data, we’re seeing a shift from the extreme seller’s market of the past few years. This means pricing strategy, home preparation, and timing matter more than ever.
If you’ve been waiting for the “perfect time” to list, understanding these metrics can help you make a more informed decision about your specific situation and local market conditions.
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