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.
