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Housing Market Trends

Supply

Unsold Inventory Index

Note: “Unsold Inventory Index” represents the number of months it would take to sell the
remaining inventory for the month is defined as the number of properties that were “active,”
“pending,” and “contingent” (when available) and divide the sum by the number of sold properties
for the month in question.

To put it simply, the Unsold Invenoty Index (UII) is how many months it would take to sell all the
active/pending listings based on how many homes sold in the month. For example, if there is 30
active/pending/contingent listings and 20 homes sold in the month of August, then the Unsold
Invenotry Index would be 1.5 (30/20) as it would take one and half months to sell all the listings
at the current rate. The lower UII are seller’s markets while higher are buyer’s markets.
38 The Bishop Real Estate Group • www.TheBishopRealEstateGroup.com