Real Estate Math
A Montana property has been on the market for 90 days. The market average days-on-market is 45 days. The absorption rate for this price range is 5 homes per month sold. There are currently 25 homes for sale in the price range. What is the months' supply of inventory?
A3 months
B5 months✓ Correct
C9 months
D1.8 months
Explanation
Months' supply = Number of Homes for Sale / Monthly Absorption Rate = 25 / 5 = 5 months. Apply the appropriate real estate math formula to arrive at the answer.. The correct answer is 5 months.. This is a common calculation on the Montana real estate exam.
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