Morningstar Inventory Signals a Shift to Buyer Territory

How many months of homes are available for sale in Morningstar? The answer is nearly seven, a figure that signals a distinct shift in market power. ALEX Intelligence calculates the Months of Inventory by dividing the current active listings by the average monthly closings over the analysis window. With 36 homes currently active and 31 sales closing over the last six months, the result is 6.97 months of inventory. In real estate analytics, a market is generally considered balanced at around four to five months. Anything above that threshold typically indicates a buyer's market, where supply exceeds demand. This elevated inventory level explains why the median close price has dropped 7.8% compared to the prior six-month period, settling at $332,000 across 31 closed sales. The data also reveals a faster-moving market in terms of time on sale. The median days on market fell by 63.2% compared to the previous period, dropping to 35 days, even as prices softened. This suggests that while there are more homes available, those priced correctly are still selling relatively quickly. However, with nearly seven months of stock, buyers have significantly more negotiating leverage than they did in the prior window. This classification is based strictly on supply and demand metrics derived from Unlock MLS data. It does not predict future price movements but reflects the current balance between active listings and sales velocity. For sellers, this environment requires competitive pricing to stand out among the 36 available properties. Want a closer look? Reply or call George at 713.918.9951 and we'll set up a showing. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog