In real estate months of inventory, MOI, is defined as the amount of time (or months) it would take for all current MLS® listings to sell given that no new listings enter the market.
MOI is calculated by dividing the total number of homes for sale by the total number of homes sold for a given period of time – usually done on a monthly basis.
MOI = Total Inventory on Market in Month X divided by Total Inventory Sold in Month X
As a general rule, the greater the months of inventory or supply, the more sellers there are than buyers, also known as a buyers’ market. On the other hand, the lower the months of supply is, the more buyers there are than sellers and market conditions would more so be in sellers’ territory. Over a sustained period of time, 4 to 6 months of inventory is considered to be a normal or balanced market. Over 6 months of inventory and we have buyers’ market. Less than 4 months and we have a sellers’ market.
In West Vancouver, there are 10.42 months of detached home inventory and 7.92 months of attached* home inventory which represents a buyers’ market for both WV detached and attached homes, based on MOI.
In North Vancouver, there are 5.12 months of detached inventory and 2.74 months of attached home inventory, representing a balanced market for detached homes and a sellers’ market for attached homes, based on MOI.
*attached homes includes apartments and townhomes
Friendly reminder, statistics are not really facts, they are more generalities. Looking at one graph and or stats on it’s own will not provide you a complete and whole picture of the market. Real estate is hyper-local, meaning that conditions vary not only from neighborhood to neighborhood, but often times down to a specific street or property type!