I look at both because one without the other can mislead you.
When I read a market, I do not stop at one number. In Sunland Village East, AZ, supply was 3.55 months last month and the typical active list price was $350,000, so I want both the pace and the price in front of me.
Last month, supply stood at 3.55 months and the typical active list price was $350,000. That combination gives me a practical way to judge whether I should be patient or move with more urgency in Sunland Village East, AZ.
I also note that supply changed by -15.1% from the previous month and -6.1% over 12 months. I use that to stay current, because a change like that can alter how I read the market from one week to the next.
I would compare current homes against the supply backdrop, keep an eye on what is still active, and make sure the price range fits the reality of the market. I would also keep Sunland Village East, AZ at the center of the decision, not at the edge.
