How is the Domus calculation for Months Supply of Inventory (MSI) different than the NAR definition?
The National Association of REALTORS®, or NAR, annualizes and seasonally adjusts many of their metrics, which "smooths out" the results and trend lines. You can read more about their methodology here.
At Domus, we recognize that seasonality is just part of the business, so we base our calculations on actual numbers rather than relying on adjustments or rolling averages. This provides a more realistic current view of the market, especially in times of fluctuation, like we're living in today. Our MSI calculation is generally the # of Active listings, divided by the # of sold listings for that same month, although some clients choose to include Pending listings in the numerator. Refer to the definition on your Market Insights dashboard to confirm your configuration.
For the Weekly Trends dashboard, the calculation is based on weekly active inventory and sales.
Related Articles
Using Market Review
Market Review is a high-level review of the market, meant for public communication and sharing. It's more detailed than the Infographic, but doesn't have as much information as Insights. It has a 13-month analysis, as well as a year-over-year option. ...
Absorption Rate vs Months Supply of Inventory (MSI)
In the Domus Analytics dashboards, we sometimes use these terms interchangeably, even though what we calculate is actually Months Supply. However, they are actually just two sides of the same coin. Absorption Rate: The rate at which homes sell in a ...
The Difference between Year to Date and Annualized metrics
In Market Insights, choosing the 'By Year' time period gives you the additional option of choosing 'Year to Date' or 'Annualized' as the aggregation against which to compare the current year results. Note that the current year on the chart AND the ...
Create a Luxury Market Seller analysis
Sellers in the High End and Luxury markets can be demanding, and stats can help you communicate with them! Sellers in general want to get the highest price in the shortest amount of time, but higher priced home take longer to sell. To illustrate ...
What's a metric indicator line?
In a few of our dashboards, you'll find a "Metric Indicator Line." This line is a visual cue to show the value of the selected month metric, as compared to the trend of that metric over time. This allows you to quickly glance at the trend line and ...