In housing, months of inventory refers to how long it will take for the current homes on the market to sell relative to how many have recently sold. So if 6 homes in a certain area have sold in the last 6 months, it is expected that 1 house per month sells, therefore, 5 homes currently on the market means 5 months of inventory.
Quarter 2 of 2013 is showing 2.69 months of inventory for the South Metro region of Colorado. That is down from 4.96 for Q2 of 2012. And what’s more amazing is that the same area had 7.04 months of inventory in 2011. So things are looking really good for the economy in housing.