June 06, 2016 | Mario Toneguzzi
CREB® chief economist walks through often-overlooked housing statistics
Months of supply is a statistic that often gets lost in today's housing market, yet it is an important indicator of the relationship between supply and demand, says CREB® chief economist Ann-Marie Lurie.
"It gives us one indication of balance in the market," she said of months of supply, which is the amount of time it would take to sell current inventory.
"If the number is really high – so you have a higher level of months-of-supply – that essentially just means that there's more supply than demand in the market and it generally correlates with declining prices in the market.