A calculation that shows how long it would take to sell all currently listed homes at the current pace of sales, assuming no new listings enter the market. It's calculated by dividing the total active listings by the number of sales in a given month. An MOI below 4 generally indicates a seller's market, above 6 suggests a buyer's market, and 4 to 6 is considered balanced.
Why It Matters
MOI is one of the clearest indicators of whether buyers or sellers have the upper hand. When inventory is low, sellers can command higher prices and faster sales. When it's high, buyers have more choice and more negotiating power. It's the single best metric for understanding market conditions.
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