Demand-Supply Balance Score (DSBS)
Discover Austin’s Demand-Supply Balance Score with Team Price. Assess market balance, home prices, and when to buy or sell in Austin real estate.
The Demand-Supply Balance Score (DSBS) measures the balance between demand (represented by pending and sold listings) and supply (represented by active listings) in the Austin real estate market, combining the Active-to-Pending and Active-to-Sold ratios into a composite score (0–100) that indicates whether the market tilts toward buyers, sellers, or is balanced.
A low DSBS below 30 favors sellers, indicating a tight market with low supply relative to demand, while a high DSBS above 70 favors buyers, suggesting ample inventory and reduced competition, with a score around 50 indicating a balanced market. This report is important because it provides a streamlined view of market dynamics, helping stakeholders understand the supply-demand equilibrium, which directly influences pricing, competition, and transaction timelines in Austin’s fast-evolving real estate landscape. It serves real estate agents, homebuyers, sellers, and investors by offering actionable insights into market conditions.
Sellers can use this data to determine if a low DSBS (e.g., 0.0 in 2021) signals a prime time to list, as tight supply and high demand—aligned with an Active-to-Pending Ratio of 0.4 in the same period—can lead to higher prices and quicker sales. Buyers can identify opportunities when the DSBS is high (e.g., 75.0 in 2008), indicating a buyer’s market with more inventory and less competition, offering better negotiation power.
Agents rely on this metric to advise clients on timing and pricing strategies, ensuring they align with the market’s tilt, while investors use it to assess whether to buy in a buyer’s market for potential deals or sell in a seller’s market for maximum returns, depending on inventory levels and demand trends. Historical data over the years shows how Austin’s supply-demand balance has shifted with economic cycles, interest rate changes, and market trends, such as the seller-dominated market in 2021 and the buyer-favored market in 2008—see the embedded report below for the latest DSBS and detailed breakdowns.
