What It Means When You See Napervilles Months Supply Of Inventory

What It Means When You See Napervilles Months Supply Of Inventory

One of the best statistical pieces of date available to really get a sense of the Naperville housing market will be Month's Supply of Inventory. The # cuts through all of the averages and medians and other information that can get quite confusing. The reason being it is simple and focuses on one of the most important pieces of economic statistics used: SUPPLY and DEMAND. 

The formula is simple. We take the most recent month and how many homes are for sale (SUPPLY) and we divide it by how many homes sold in that month (DEMAND). What we end up with is how many months it would take to completely sell what we have available based on how quickly we are selling them. 

So, now we know how to find the number but what do the numbers mean. Last months MSI (months supply of inventory) could have been 3.6 and a few years ago it was at 14.7. Here is what you need to know. Historically a healthy and balance MSI is between 4-6 months. If we are higher than 6 months usually you will hear chatter that Naperville is a buyer's market. The opposite is true when we are below 4 months. The chatter will lean towards Naperville being a seller's market. That's it. Easy. The graph below is a "live" picture of the MSI in Naperville, Illinois. The article is being written in March 2014 but the graph itself will update with the most recent data. Enjoy!

Few more pieces of information on the graph above. It is looking at single family homes, not condos or townhomes. It is looking at resale homes, not new construction. Finally, it is looking at traditional sales, not foreclosures or short sales. If you are looking for something specific don't hesitate to ask for it. I can customize this and many other graphs to reflect what you currently have (seller) or want (buyer).

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Phone: 312-375-4494
Dated: March 19th 2014
Views: 9,172
About Patrick: eXp Realty is the first full-service, cloud-based residential real estate brokerage company. Consume...

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