Unsold Inventory Index

AAA

DEFINITION of 'Unsold Inventory Index'

A monthly statistic released nationally that details the number of unsold homes expressed in the time (in months) it would take to sell them at current rates. When the unsold inventory index is compared to the average number of sales per month in the recent past, it indicates the pace or velocity of home sales.

INVESTOPEDIA EXPLAINS 'Unsold Inventory Index'

The unsold inventory index is watched closely on local, state and national levels as a primary indicator of housing-market health. A rising index number indicates a slowing market, while a declining number means the market is improving. For example, if the unsold inventory is two months, it would be considered a seller's market, while eight months would be considered a distressed or buyer's market.

RELATED TERMS
  1. Affordability Index

    A measure of a population's ability to afford to purchase a particular ...
  2. Housing Bubble

    A run-up in housing prices fueled by demand, speculation and ...
  3. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  4. Asset

    1. A resource with economic value that an individual, corporation ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy ...
  6. Seller's Market

    A market condition characterized by a shortage of goods available ...
Related Articles
  1. Why Housing Market Bubbles Pop
    Home & Auto

    Why Housing Market Bubbles Pop

  2. Leading Economic Indicators Predict ...
    Active Trading

    Leading Economic Indicators Predict ...

  3. Building Green For Your House And Wallet
    Personal Finance

    Building Green For Your House And Wallet

  4. The Fuel That Fed The Subprime Meltdown
    Personal Finance

    The Fuel That Fed The Subprime Meltdown

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center