how or what is the formula to find out how many months the supply of homes is in a given area?

Question

is the marketing time the same as month supply of houses? When people say 10 month supply of homes in the market, does it also mean that the marketing time of a home is 10 months?

Answer 1

Number of homes on market/number of homes sold in an average month (there are seasonal variations in most markets).

So, 10 months worth of homes on the market means that it would take 10 months to sell every house currently for sale at the current sales rate.

It does not always mean that the average marketing time of a home is the same number of months but probably isn't a bad guideline to use as a reference point! Your real estate agent can usually give some data about the percent of homes on the market for whatever time frame. A home that is priced right will sell much faster than the average home. A critical mistake most people make is to market at too high of a price and then slowly come down as they don't get any action on the house. This becomes a vicious cycle and doesn't usually end well for the seller.

good luck!

Answer 2

Generally yes. Take the number of homes currently available and divide by the number of homes sold last month.