Months Supply of Inventory basically indicates how long it would take for all the homes that are on the market to be sold or absorbed, based on the amount of homes currently on the market and the rate that homes have been sold in the past. Why is this important? Because it’s an excellent indicator of how balanced the market is. In other words, it’s a good way to know if we are in a “Buyers Market” or “Sellers Market” in Sonoma and Marin county.
A general rule of thumb is:
Sellers Market = Less than 6 months MSI
Buyers Market = More than 9 months MSI
Balanced Market = Around 6-9 months MSI
Here are the Area Charts and Price Bands for Sonoma for May 2015.