Why Is Housing Inventory an Important Figure?

Greater Phoenix Area Real Estate Podcast

Housing inventory is an important figure. It measures the supply of homes on the market as well as the demand for those homes.

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What is housing inventory and why is it important to buyers? We are answering those questions and more today.

Housing inventory is a measure of our market’s supply.

Housing inventory is a measure of our market’s supply. Basically, if we stopped listing homes right now, inventory levels measure how long it would take for all of the homes on the market to sell based on the absorption rate.

A balanced inventory is around four months. Anything lower than that is a seller’s market while anything above it is a buyer’s market.

The number of homes on the market is going to affect your value. The more homes that are on the market, the more stagnant the market becomes, and the more competitive you have to be with your pricing.

Low inventory levels, like those in Avondale, lead to competitive markets with a lot of multiple offer situations. Sellers will want to price high and see where the market goes.

If you’re in a high inventory market like the one in Scottsdale, things will be more stagnant and you’ll have to be more competitive with your pricing when selling.

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