What Months Of Inventory Means In Burlington

If you are trying to time a move in Burlington, one number can help cut through the noise: months of inventory. It looks simple, but it tells you who has pricing power and how fast homes are selling. You want clear, local signals so you can set the right price or write the right offer. In this guide, you will learn what months of inventory means, how to calculate it, and how to use it for smarter decisions in Burlington. Let’s dive in.

Months of inventory explained

Months of inventory, sometimes called months of supply, tells you how long it would take to sell all current listings at the recent sales pace, assuming no new listings. It is a quick way to read market balance.

The simple formula

MOI = current active listings ÷ average monthly sales. If Burlington has 600 active listings and 200 sales in the last month, MOI is 3 months. This simple approach is fast but can be volatile.

Use a smoothed average

You can smooth out noise by using a 3‑ or 12‑month average for monthly sales. A 12‑month rolling average reduces seasonality and helps with planning and comparisons across months.

Absorption rate

Absorption rate is the inverse of MOI. It equals monthly sales ÷ active listings. When MOI is 3 months, the absorption rate is about 33 percent per month. Higher absorption means listings turn over faster.

What MOI signals in Burlington

Industry guidelines help you translate MOI into leverage.

• Under 2–3 months: strong seller’s market. Expect shorter marketing times and more competitive offers.
• Around 3–6 months: balanced market. Negotiations are more even and routine conditions are common.
• Over 6 months: buyer’s market. Buyers have more room on price and terms, and listings sit longer.

City‑wide MOI can hide micro‑markets. Waterfront streets or certain commuter‑friendly pockets may run tighter than the Burlington average. Property type matters too. In many Ontario markets, condos often show higher MOI than detached homes, and Burlington can display similar splits.

Calculate MOI step by step

State your method so you and your agent can compare apples to apples.

1. Pick your scope: Burlington city‑wide or a specific neighbourhood, property type, and price band.
2. Count current active listings for that slice of the market.
3. Choose your sales pace: last month’s sales, or better, a trailing 3‑ or 12‑month average.
4. Divide active listings by average monthly sales. That result is MOI.
5. Optionally, convert to absorption rate by flipping the fraction.

Hypothetical examples

• Example A, simple: 600 active listings and 200 sales last month. MOI = 600 ÷ 200 = 3 months. Absorption rate = 33.3 percent per month.
• Example B, smoothed: 600 active listings and a 12‑month average of 150 sales per month. MOI = 600 ÷ 150 = 4 months. That reads more balanced and slightly buyer‑friendly than the simple snapshot.

Turn MOI into strategy

For sellers

• Track MOI for your micro‑market by property type and price band. List when your segment shows lower MOI than the city average to increase pricing power.
• Use a 3‑ to 12‑month average in pricing talks to avoid reacting to a noisy month.
• In low‑MOI conditions, price competitively, prepare for multiple offers, and tighten conditional periods where reasonable.
• In higher‑MOI conditions, be proactive on price, staging, and marketing, and allow room to negotiate.

For buyers

• Check MOI for the exact neighbourhood, property type, and price range you are targeting. City averages can mislead.
• In low‑MOI segments, line up pre‑approval, move quickly, and consider escalation clauses.
• In high‑MOI segments, expect more options, longer inspection and financing windows, and more leverage on price and credits.

What moves MOI in Halton

• Interest rates: Higher mortgage rates usually soften demand, slow sales, and lift MOI. Lower rates can tighten MOI.
• New supply: New builds, condo completions, and more listings push inventory higher and can raise MOI.
• Seasonality: Spring often brings more listings and sales. Using a smoothed average helps you avoid misreading seasonal swings.
• Local demand: Population growth, commuting patterns to the GTA, and Burlington amenities influence demand levels and MOI.

Where to find Burlington data

To ground your decision in local numbers, look to these sources for methodology, definitions, and regular updates:

• REALTORS Association of Hamilton‑Burlington (RAHB) for Burlington MLS market reports and neighbourhood splits.
• Canadian Real Estate Association (CREA) for national definitions and trends that frame MOI.
• Canada Mortgage and Housing Corporation (CMHC) for housing starts and completions that signal future supply.
• Halton Region and City of Burlington for permits and demographic context that shape inventory over time.

When you review a report, note exactly how MOI was calculated, such as “current active listings ÷ trailing‑3‑month average sales,” and whether it is city‑wide or by property type.

Get clear, local guidance

MOI is a helpful, short‑to‑medium term indicator. It can guide pricing, timing, and negotiation, but it does not guarantee price direction. Pair it with price trends, days on market, and list‑to‑sale price ratios for a full picture. If you want a valuation‑led plan tailored to your Burlington segment, connect with Paul Breakey for a data‑driven strategy and a free home valuation.

FAQs

What is months of inventory in real estate?

• It is active listings divided by average monthly sales, showing how many months it would take to sell current inventory at the recent sales pace.

How does MOI relate to buyer or seller markets in Burlington?

• Under 2–3 months often signals a seller’s market, 3–6 months a balanced market, and over 6 months a buyer’s market, with neighbourhood and property type differences.

What is absorption rate and how is it used?

• It is the inverse of MOI, calculated as monthly sales divided by active listings, showing how fast listings are being absorbed each month.

How often should I check Burlington’s MOI?

• Monthly is common and weekly snapshots can help in fast markets, but use 3‑ to 12‑month averages for strategic decisions.

Should I make timing decisions only on MOI?

• No. Combine MOI with price trends, days on market, list‑to‑sale ratios, and interest‑rate outlook, plus your personal timing and goals.