Note: In the link on the menu at the top of this page for the “Market Absorption Rate Spreadsheet”, please consider:  Inventory Levels, "Months Of Inventory" are reported in terms of  “months of housing supply”.   "Absorption Rates" reflect the monthly average from the most recent 12-months' activity that occurred in the marketplace (during the time period being reported).  Together they measure the relationship between the total number of listings available and the time required to absorb them.  The number of months’ supply, the "Months Of Inventory", is an important number.  It illustrates the inventory of homes available in relation to the number of homes anticipated to sell per month, the "Absorption Rates".  Generally, a balanced supply or Normal Market would be 5 to 6 months' worth of inventory, favoring Buyers & Sellers fairly equally; supplies greater than 6 months would be an oversupply, indicating a Buyers Market; and supplies less than 5 months would indicate an undersupply, suggesting a Sellers Market.