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"Balancing Act: What is a 'Normal' Market?"
(Gaines) No. 1897, Tierra Grande reprint, 3pp. (4/27/2009) |  The months inventory measure is one way to determine the relative balance of housing supply and demand in a market. As supply increases relative to demand, prices tend to fall. Inventory level is not the only factor affecting prices, so the relationship is not a direct, mathematically precise computation. Rather, it is a general indicator of the direction and potential magnitude of future price changes.
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