Market Tools
Market Absorption Calculator
Calculate months of inventory and understand your local market conditions in seconds.
1Large Area
2Close Proximity to Home
3Actual Relevant Homes
How Months of Inventory is Calculated:
- 1. Homes Sold ÷ Months of Past Data = Average # Selling Per Month
- 2. Active Listings ÷ Average # Selling Per Month = Months of Inventory
1 · Large Area
- Months of Inventory
- 0
- Homes/Month
- 0
- Status
- -
2 · Close Proximity to Home
- Months of Inventory
- 0
- Homes/Month
- 0
- Status
- -
3 · Actual Relevant Homes
- Months of Inventory
- 0
- Homes/Month
- 0
- Status
- -
Understanding Months of Inventory
🟢 Seller's Market
Below 6 months
- 0-2 months: Strong — Severe shortage, bidding wars
- 2.1-4 months: Moderate — Competitive, quick sales
- 4.1-5.9 months: Mild — Slight seller advantage
⚖️ Balanced
~6 months
- 5.8-6.2 months: Balanced — Equal negotiating power
- Stable pricing and normal absorption
Buyer's Market
Above 6 months
- 6.1-8 months: Mild — Buyer negotiation room
- 8.1-10 months: Moderate — Concessions common
- 10.1+ months: Strong — Oversupply
Why 6 Months Matters
Six months of inventory represents a balanced market where supply meets demand. Below 6 months favors sellers (competition for homes), while above 6 months gives buyers more leverage (more choices, room to negotiate).
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