What's an MSI and Why Does it Matter When Selling in San Franicsco?
MSI or Months' Supply of Inventory- How long it would take for all the home's on the market right now if nothing new came on the market.
To calculate, you take the number of homes sold in the last 12 months and divide it by 12. This is the average number of sales per month. You then take the current number of homes listed and divide it by that average and that gives you the number of months it will take to sell the current inventory or...the MSI.
The lower the MSI, the faster homes are selling. MSI's below 3-4 month's indicate a seller's market. Above 6 months indicates a buyer's market
Okay. Great. What does this have to do with selling your home in San Francisco?
I'm glad you asked!
2.7, Whoa, that's low!!!
MSI in San Francisco is as low as it has been in years, reflecting motivated buyers snapping up homes in a low-inventory environment. If we just look at Single Family Houses on market, MSI is lower still, and in some hot neighborhoods, MSI is under 2 months of inventory, which is considered very, very low.
Are you thinking of Selling?