Market Absorption Calculator

Calculate months of inventory and understand your local market conditions in seconds.

Calculate Your Market

1 Large Area

2 Close Proximity to Home

3 Actual Relevant Homes

How Months of Inventory is Calculated:

1. Homes Sold ÷ Months of Past Data = Average # Selling Per Month

2. Active Listings ÷ Average # Selling Per Month = Months of Inventory

Understanding Months of Inventory

🟢 Seller's Market

Below 6 months

  • 0-2 months: Strong — Severe shortage, bidding wars
  • 2.1-4 months: Moderate — Competitive, quick sales
  • 4.1-5.9 months: Mild — Slight seller advantage
⚖️ Balanced Market

~6 months

  • 5.8-6.2 months: Balanced — Equal negotiating power
  • Stable pricing and normal absorption
Buyer's Market

Above 6 months

  • 6.1-8 months: Mild — Buyer negotiation room
  • 8.1-10 months: Moderate — Concessions common
  • 10.1+ months: Strong — Oversupply (Red)

Why 6 Months Matters

Six months of inventory represents a balanced market where supply meets demand. Below 6 months favors sellers (competition for homes), while above 6 months gives buyers more leverage (more choices, room to negotiate).

Need a Deeper Market Analysis?

Get a comprehensive market report tailored to your specific area and neighborhood.

Contact Us for Custom Reports