Market Balance (Months of Supply) By Price Range
Scott P. Rogers
Most housing market analysts consider six months of inventory (active listings) to be an indicator of a balanced market (between buyers and sellers). We have been out of balance for quite a few years now in most price ranges.
Under $200K
Even four years ago there were only 4.2 months of supply available in this price range, and now that is down to a shockingly low 0.8 months of supply.
$200K - $300K
We saw a balance four years ago with 5.9 months of supply available, but that has dropped to only 1.3 months of supply as of last month.
$300K - $400K
There was an oversupply of homes in this price range four years ago, with 7.5 months of supply on the market - but today this price range is significantly undersupplied with only 2.3 months of inventory on the market.
Over $400K
This price range was drastically oversupplied four years ago with 12 months of supply available, and now is "at a balance" with 5.8 months of supply available.
