Months Inventory

Month Inventory is calculated as the number of Active Listings divided by the average number of Closed Listings for the last 3 months.

When you want to know what the current Month's Inventory is, this is a relatively straight forward calculation.

We take the number of Active Listings (as described here). Then calculate the average number of closed listings for the last 3 months. Lastly, we divide the number of Active Listings by the average number of closed listings.

Active Listings / 3 Month Average Closed Listings = Months of Inventory

This gets a little more complicated when you want to know what the Month's Inventory was for the for the last year, last quarter (or any period of time larger than a month). In these cases, where the date range being reported is greater than 1 month, we provide an an average of the Months Inventory for each month in that range.

For instance, if you wanted to know what the Months Inventory was for last year, we calculate the Months Inventory for every month last year, then give you the average.