Boise Real Estate: 101 – Months' Supply
My previous post explained absorption rate, which must be calculated before calculating months’ supply.
Months’ Supply is calculated by dividing the number of available properties by the absorption rate.
On 7/1/10, there were 96 homes for sale in Eagle priced above $500,000.
Using the example of our current Eagle market, you would divide 96 available properties by the absorption rate of 5 homes per month to arrive a 19.2 months’ supply of homes priced above $500,000.
July 25th, 2010 Posted in Inside Real Estate
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