Quantifying What ‘Low Inventory’ Means

Below we have outlined what the Months Supply of Inventory or ‘MSI’ is for Treasure Cay, Hope Town, Abaco, and the entire Bahamas. To figure out the MSI of an area, you must divide the number of active listings currently by the sales or pending sales (over the past 9 months). If the MSI is less than 4.0 the sellers have greater power in the market!  

TREASURE CAY:

64 active listings/39 (26 pending, 13 sold) = MSI of 1.64

HOPE TOWN:

39 active listings/43 (18 pending, 25 sold) = MSI 0.91

ABACO:

314 active listings/163 (105 pending, 58 sold) = MSI 1.92

BAHAMAS:

2,667 active listings/1,106 (567 pending, 539 sold) = MSI 2.4  

What is also quite telling is that the ratio of pending to sales is higher for Abaco and Treasure Cay, which is caused by two factors: (1) delays associated with inter-island business – between Abaco and Nassau; and (2) challenges associated with doing remote sales with many second homeowners being out of country.