In the NE Florida market we know that once we enter 7+ months of inventory, prices will go down.

 

At the beginning of the year inventory was growing, demand was slowing and months of supply hit 6.1 months.

 

This means that in January, if we did not add anymore listings to the MLS, it would take us 6.1 months to sell all the homes available.

It is a red flag to see our Months of Supply grow exponentially.

 

This means demand is slowing (which always happens during the end of year)

 

But how quickly it happened gave industry professionals pause.  The questions of will prices go up went from a “definitely yes” to a “potentially no”.

 

So we wanted to keep an eye on this indicator as we get into the busy season.

 

Good News is, closings are trending upward and inventory has flattened out.  This is the basics of the historical trends we see.  The summers move the fastest, and the winters move the slowest.

This doesn’t mean that we are out of the woods yet; there are hundreds of factors that go into our housing market.  For now, things are positive, but we want to keep an eye on Months of Supply moving forward.