How Months of Inventory Can Guide Sellers and Buyers
Today, I want to talk about a metric that doesn’t always get a lot of attention but plays a huge role in shaping the real estate market—months of inventory. Whether you’re a seller or a buyer, understanding this number can give you a big advantage when making decisions.
What Does “Months of Inventory” Mean?
In simple terms, months of inventory measures how long it would take for all the homes currently on the market to sell if no new listings were added.
Lower months of inventory = a competitive market for buyers (sellers have the upper hand).
Higher months of inventory = less competition for buyers (more negotiating power).
At the peak of Austin’s hot market, we were sitting at less than one month of inventory—which meant homes were flying off the market. Today, we’re closer to 6.1 months of inventory, which is a big shift.
What This Means for Sellers
If you’re selling in today’s market, pricing your home correctly is more important than ever. Buyers have options now, so your home needs to be:
Priced appropriately based on comparable sales.
In good condition, ready to stand out from the competition.
Homes that check both boxes are still moving quickly.
What This Means for Buyers
If you’re buying right now, this is great news. With more than six months of inventory available, you’ll find:
More choices than we’ve seen in years.
Opportunities to negotiate, whether that’s on price, repairs, or concessions.
Less pressure compared to the frenzied market of the past.
Final Thoughts
Months of inventory is one of the best ways to get a quick snapshot of market conditions. Right now in Austin, we’re in a more balanced market compared to just a couple of years ago. That means both sellers and buyers need the right strategy—and that’s where I come in.
If you’re thinking about making a move, let’s talk about how these market conditions can work to your advantage.
