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Understanding the Unsold Inventory Index: A Key Real Estate Metric

The Unsold Inventory Index measures the number of months required to sell remaining real estate inventory for a specific month. This index is calculated by dividing the total number of "Active," "Pending," and "Contingent" properties by the number of properties sold within the same month. This metric helps assess market conditions and inventory levels, providing valuable insights for buyers, sellers, and real estate professionals. For more information, refer to the California Association of Realtors®.

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Understanding the Unsold Inventory Index: A Key Real Estate Metric

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  1. Unsold Inventory Index (Months) Note: “Unsold Inventory Index” represents the number of months it would take to sell the remaining inventory for the month in question. 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. SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

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