How To Measure Housing Inventory

Just to give you an idea of where we are currently in the Atlanta real estate market, I wanted to revisit the concept of housing inventory. Real estate professionals measure housing inventory in “Months of Supply”. This is an estimation of how many months it would take to sell EVERY home on the market if no other homes were listed. Prior to 2020 we were already in a VERY STRONG Seller’s market with the supply right around 3-3.5 months.

Since then as a result of many factors such as supply chain shortages, record low interest rates and some seller hesitation, the supply here in Atlanta has fallen to 1.2 months. Meaning that we have an EXTREME home supply shortage. So, we need to TRIPLE our current inventory to get back to the already strong seller’s market we had in 2019. 

In order to move us into a BUYER’S MARKET, we would need 6-7 months of supply. This just goes to show how far away we are right now from being in a buyer’s market. Though the market is “shifting” because of increased interest rates, demand is still very high partially due to inventory being so low.

If you have questions about this or anything else related to the Atlanta housing market, reach out to The Stanley Group anytime!