Schizo – one thing you have to learn is to quit looking at the absolute inventory number.
Instead – look at months of inventory – calculated as inventory at the end of the month divided by the number of sales in that month.
Or, inventory at the end of the year, divided by the number of sales in the past year, then multiply by 12.
This tells you how much inventory there is RELATIVE to the number of buyers, which really gives you the supply/demand information you need to make a basic economic assessment.
As you may have heard, the national number is 9.2 months of inventory – the highest in 16 years.
