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Line 4, Months of Housing Supply (Total Listings/Absorp Rate)

Assuming that there is sufficient data, the results reported on this line should correlate with the indication provided in the NEIGHBORHOOD section related to Demand/Supply.


Assume that the Current-3 Months column indicates six sales and eighteen listings. The
absorption rate would be two per month (6 ÷ 3=2). At that rate, the eighteen listings would
indicate nine months of supply, and correct reporting would be as shown at left:

Common Issue

Incorrect Reporting of Number of Listings

Incorrect reporting of the number of current listings is the most common cause for an error in calculating and reporting the months of housing supply. Refer to the section on Total # of Comparable Active Listings for further discussion of that issue.

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