Months inventory = Active/Pending, or Active/Sold? Pending is more current, but doesn’t include those that fall out of escrow. Sold is more accurate but lagging. Why not use both? Which one includes new homes?

For the denominator, why do you want to use a 6 month or 3 month average? Why not just use the current month? I would chart this as this year vs. last year, so the seasonal fluctuations would not mess anything up.

My idea for months inventory = Percent change in Active/Pending in July 06 vs. July 05.

What is the purpose in tracking expired, cancelled, or withdrawn listings? From my view, only solds matter. If something doesn’t sell, why do we need to know the reason? Are you saying that this category is smaller in times of high demand? If so, the high demand is already tracked by sales. What additional information is gleaned from tracking exp/canc/withdr?

When you say we should compare MI to pending, is that because you used Sold as the denominator? If so, why not have 2 metrics: MI using pending and MI using sales?