What Does Months of Inventory Mean for Buyers and Sellers?
By Jeff and Lane Morrell · October 2026
The Morrell Group | eXp Realty
Months of inventory is how long it would take to sell every listed home if no new ones came on the market. Most experts call 5-6 months balanced, less favors sellers, and more favors buyers. El Paso County sat at about 4.9 months of inventory on October 19, 2026, with townhomes and condos higher at 5.5 months.
How to read it
Divide active listings by homes sold per month. Around 2-3 months is a seller market, 5-6 months is balanced, and 7-plus tilts to buyers. It is the number economists and agents use because it captures supply and demand in a single figure.
Where El Paso County is
Inventory has ranged from roughly 3.3 months (early October 2026) to 4.9 months (October 19, 2026) depending on the week and the measure, per our October posts. September 2026 state data showed Colorado home sales down 15.1% year over year while inventory grew to its highest September level since 2011 (Colorado Association of REALTORS report, released October 13, 2026).
What to do with the number
Buyers can negotiate more aggressively when months of inventory climb: price, concessions, inspection items, and timeline. Sellers should price sharply and expect to compete against more choices. The countywide figure still hides neighborhood differences, so ask us for your area number.
When someone asks whether it is a good time to buy or sell, months of inventory is the honest starting point. It tells you the balance of power on a given street right now, and it changes month to month. We will pull yours on a call and show you exactly what the number means.
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