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The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current inventory. An MAI value greater than 30 typically indicates a "Seller's Market" (a.k.a. "Hot Market") because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a "Buyer's Market" (a.k.a. "Cold Market") where the inventory of already-listed homes is sufficient to last serveral months at the current rate of sales. A cold market will typically cause prices to fall.
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