The above graph is updated daily. It shows the current active listing to homes selling ration. This tells how many months of home inventory is on the market (how long would it take to sell all the currently active homes if no other homes were listed until all the currently listed homes would sell).
This information is relevant to determine if it is a sellers market, buyers market or a balanced market. If all the homes would sell in less than 4 months, that is considered a sellers market. Anything between 5 and 8 months is a balanced market and if it would take longer than 9 months it is considered a buyers market.
The above data is in percentages, so the conversion is this. Below 12% is considered a Buyer’s market. 13% to 22% is considered a balanced market. Anything above 23% is considered a Seller’s market.