Write the calculation in full
State the reported inventory count, the closed-sales count, the number of months in the sales window and the division. A label without those inputs hides which pace was used.
Keep property types separate
Residential and condominium markets can have different inventory and closing pace. Combining them may answer a broad question but can obscure the segment relevant to a household.
Test the denominator window
A single month reacts quickly but can be noisy. A three-month average smooths the pace but responds more slowly. Show both when the interpretation could change.
Do not read the ratio as a countdown
Months of supply does not predict how many months one home will take to sell or how long inventory will last. Listings and sales continue to enter and leave the market.
Move from region to property
After reading the broad ratio, inspect current eligible listings, relevant recent sales, condition, pricing and timing. A regional category cannot establish leverage on one address.
Sources & further reading
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