The reason housing inventory is such a vital statistic in real estate is that it gives you an indication of whether it’s a buyer’s market or a seller’s market.
A healthy equilibrium rate is considered six months of inventory. Anything longer than that is considered a buyer’s market. Anything less is considered a seller’s market. By “months of inventory” we mean how many months it would take to sell all the properties that are for sale given the average number of sales per month. If the number is six months, that means it’s going to take six months to sell the properties that are on the market right now.
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Housing inventory tells you whether it’s a buyer’s or seller’s market.
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Is Charlotte a buyer’s market or a seller’s market? Right now, Charlotte is a very strong seller’s market for homes listed under $500,000. Within that price range, the inventory rate is about three to four months. For homes listed over $500,000, it’s a buyer’s market. It’s an even stronger buyer’s market for homes listed above $2 million. Within that price range, the inventory rate is 26 months.
If you have any questions you’d like answered, just give us a call or send us an email. We look forward to talking with you soon.
