It’s an indicator of supply and demand and overall market competitiveness; i.e. whether it’s a buyer’s or seller’s market, or if the market is heating up or cooling off. “How’s the market?” by comparing the current rate of sales versus inventory plus additional demand metrics.

• A MAI of around 30 indicates a balanced market, with just enough supply to meet demand.
• A MAI in the low 20s or below is a buyer’s market, with more supply than demand and prices declining in the future.
• A MAI of 35 or more points to a seller’s market, with demand outpacing supply and prices starting to rise.
• A MAI of 45 or more is a strong seller’s market. inventory is very tight, demand is high, and prices are likely climbing.