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. Our MSI calculation is generally the # of Active listings, divided by the # of Closed listings for that same month. You can read more about why we prefer this methodology.
For the Weekly time frames, the calculation is based on weekly active inventory and sales.
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