Month’s Supply of Inventory 2011 05Posted: June 30, 2011
The market is considered to be in equilibrium (there is enough supply to satisfy demand) when the month’s supply of inventory is around four or five months. Loudoun County’s month’s supply of inventory increased slightly from a revised figure of 3.7 months in April to 3.8 in May 2011. At this time last year, the inventory level was 3.2 months. It appears that Loudoun is undersupplied although that is not necessarily the case across the entire county.
Supply was especially constrained in Eastern Loudoun again during May with only 2.8 month’s of available inventory. Eastern Loudoun is the largest contributor to results across the county since it typically accounts for 60%+ of the sales in any given month. In three of the five months in 2011, the available inventory in Eastern Loudoun was below 3 months indicating that it is under supplied. Leesburg’s inventory also decreased to 3.7 months, posting its fourth consecutive decline this year. However, the available inventory increased to 9 months during May in Western Loudoun after three months in the eight-month range.