MSI is calculated by first determining the absorption rate per month by dividing the number of homes sold over a certain number of months (usually 12 but I used 4) and then dividing by the number of months. Then, you divide the number of active listings by the absorption rate. I used four months because I wanted to determine the statistic only for the first part of 2009 (1/1/09 to 4/31/09).
MSI less than 5 months = seller's market
MSI equals 5-7 months = balanced market
MSI greater than 7 months = buyer's market
My findings are detailed below...
Current inventory (as of April 31, 2009) = 966
25% absorption rate in Oakland for last year
11% absorption rate in Oakland currently
9.5 months of inventory in Oakland. (anything over 7 is a buyers market)
94601 – 95 active, 9.5 per month, 10 MSI – buyer’s market
94602 – 41 active, 6.75 per month, 6.1 MSI – balanced market
94603 – 125 active, 18.25 per month, 6.8 MSI – balanced market
94605 – 156 active, 17.25 per month, 9 MSI – buyer’s market
94606 – 23 active, 3.5 per month, 6.6 MSI – balanced market
94607 – 74 active, 4.25 per month, 17.4 MSI – ridiculous buyer’s market
94608 – 35 active, 4 per month, 8.75 MSI – buyer’s market
94609 – 27 active, 3 per month, 9 MSI – buyer’s market
94610 – 59 active, 3 per month – 20 MSI – buyer’s market
94611 – 93 active, 5.25 per month, 17 MSI – buyer’s market
94612 – 21 active, .5 per month, 42 MSI – off the charts buyer’s market
94618 – 36 active, 5 per month, 7.2 MSI – just slightly a buyer’s market
94619 – 56 active, 10.75 per month, 5.2 MSI – balanced but almost a seller’s market
94621 – 113 active, 14.5 per month, 7.8 MSI – buyer’s market
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