Updated over 15 years ago on . Most recent reply
Months of inventory
An agent just sent me a Market Trend Report for my market and for some areas the months of inventory is from as low as 5 months to as high as 96 months. Obviously, 96 months is extremely high, but what's acceptable number as far as months of inventory is concerned? I am specifically looking this as a rehabber.
Thank you guys in advance.
Most Popular Reply
It may be different from market to market, but here in Kansas City a balanced market is considered a 6 month supply of homes. Right now we are averaging an 8 month supply. A 96 month supply is going to take a long time to come back. The supply includes the time it takes to market a deal all the way to the closing date. I know the bubble brought an average closing time frame of 30 days often, but in this market there is no average DOM in general you can rely on. You have to base it on the average for the area. More than 12 months gets outside the norm in our area. Many factors can play into the days on market. It's important to know what those factors are.