I have discussed absorption rates and months supply of inventory in the past. Here is the story, based on data from the Memphis Area Association of REALTORS (data considered reliable but not warranted), as of 12/26/2007. I will have more data after year end, but for now it looks like we have an 8.7 month supply of single family homes in the MAAR coverage area, with a 9 month supply inside the Memphis City Limits (as close as I could get the boundaries) and a 7.6 month supply in my major focus areas, zips 38103, 38104, 38112. Generally a 6 month supply is considered a balanced market, while higher than 6 favors buyers.

I also included the number of expired listings for the 12 month period. A number of these expireds were re-listed and are reflected in sales or inventory but many are not – they are homes that have not yet re-entered the marketplace. This could have an impact on months supply, but the fact that sellers have chosen to keep their houses off the market has probably contributed positively to the overall health of our market.