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. Economic Indicator

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

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

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

    A market condition characterized by a shortage of goods available ...
  6. Existing Home Sales

    An economic indicator of both the number and prices of existing ...
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. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center