The National Association of Realtors standard for a market in balance between buyers and sellers is a market where there is a 6 month supply of homes. The calculation is simple. Total sales within the preceding 6 month period divided by 6 then divided by the number of homes on the market. 

This is just a fictitious example to illustrate the point. Let’s say you want to analyze houses in Amherst, Clarence and Orchard Park between $250K and $400K. Your computer search reveals that are 60 sales during the preceding 6 months. Therefore 60 divided by 6 = 10 sales per month.

 You do another search to reveal there are 20 houses for sale between 250 and 400 in these areas. You do the math. 20 divided by 10 = a 2 month supply of homes in this category. 

With the standard being 6 months, you can see this would be a strong seller’s market.

Here’s a sampling of actual data for Western NY  – various areas and price ranges:

Upper West Side/Elmwood Village          $200-500K           –              2.28 month supply

Amherst                                                              $150-200K           –              1.6 month supply

Amherst                                                              $300-500K           –              5.3 month supply

Amherst                                                              $700K-1M            –              11 month supply

Clarence                                                              $250-450K           –              3.35 month supply

Clarence                                                              $500-700K           –              8.38 month supply

Lancaster                                                             $200-400K           –              6.38 month supply

Orchard Park                                                      $300-500K           –              4.41 month supply

Orchard Park                                                      $700K-1M            –              4.82 month supply*

 *this data reflects sales reported up to 5/15/13 for the immediately preceding 6 month period.