Real Estate Journal

Markets on hot real estate don’t stay hot forever. Home sale market in some area around the country has already slowed after being robust for several years. The unsold inventory index has been used to tell which way the market and home prices were moving. Reports on unsold inventory index show how many months it would take to sell the existing inventory of homes for sale at the current sales pace. Changes in the unsold inventory index are directly affiliated to changes in supply and demand. When the requirement for housing goes up, the rate at which homes sell pick up the pace and the existing inventory of homes for sale decreases.