What is inventory? ???????
When a seller lists a property, it becomes counted as inventory. When it goes under contract, it becomes a pending sale. Inventory is calculated monthly by taking a count of the number of active listings and pending sales on the last day of the month.
Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.
According to our local MLS, LA County has 2.6 months of inventory which technically means we are in a sellers market although frequent price reductions and rising rates suggest otherwise.
The reality is that the real estate market is influenced by a variety of factors and inventory is just 1. Curious what is happening your market? Send me a DM or drop me a comment below.
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