MOI stands for “Months of Inventory”
MOI indicates how many months it would take to sell all the current inventory of homes for sale, based on the current sales pace. It is a key metric in assessing the balance between supply and demand in a housing market.
The Importance of Months of Inventory Stats
Real estate agents and appraiser alike use MOI to decipher fair market value of a home.
- Seller’s Market: If the MOI is low (typically below 3 months), it indicates a seller controlled market, where demand exceeds supply. In this scenario, homes are likely to sell quickly and sellers may have more power in negotiations.
- Buyer’s Market: Conversely, a high MOI (usually over 6 months) indicates a buyer’s market, where there is more supply than demand. In such conditions, buyers have more options and can negotiate better pricing or terms.
- Balanced Market: An MOI between 4 and 6 months is generally considered a balanced housing market, where supply and demand are relatively equal.
