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.
Check out 2014 compared to 2104. Sellers are having no problem selling right now due to the high demand and low supply. Demand should continue as homeowners that have been out of the market due to prior bankruptcies and/or foreclosures head back into the market now that their credit conditions have improved. Plus there are more college graduates living at home than ever before, these 1st time homebuyers will be heading out there too creating even much more demand. Let’s keep an eye on the market together!
Go here for more information regarding your local market.