Supply vs. Demand - Where do we stand?

As is typical in New England, more houses come on the market in the Spring. In order to measure the activity level, we look at how many houses are selling on a monthly basis to determine the absorption rate and # of months' supply currently being offered. A supply of 4 months or less denotes a Sellers market, 5-7 months means it's a balanced market and over 7 months supply is a buyer's market.

The chart below shows how our local towns are doing as of May 4, 2010:



Source: mlspin.com, single family homes