Market Absorption Efficiency Ratio
Analyze the Austin Market Absorption Efficiency Ratio to measure sales efficiency. See how new listings convert to sales with historical data from Team Price Real Estate’s market metrics.
The Market Absorption Efficiency Ratio measures how efficiently the Austin real estate market absorbs new listings into sales, calculated by dividing the number of homes sold by the number of new listings, expressed as a percentage, offering a clear view of sales efficiency and market demand.
Historical trends reveal its variability; for example, in April 2021, the ratio peaked at 1.66 (166%), indicating a strong seller’s market where new listings were rapidly converted into sales during a period of high demand and low inventory, while in January 2009, it dropped to a low of 0.30 (30%), reflecting a sluggish buyer’s market during the financial crisis when new listings far outpaced sales.
A ratio typically above 1.0 (100%), suggests a robust market where new listings are efficiently absorbed into sales, often seen during periods of strong buyer activity, whereas a ratio below 0.50 (50%), indicates a slow market with weak demand, common during economic downturns. This metric provides valuable insights into the sales efficiency of the Austin housing market with Team Price Real Estate’s comprehensive market performance metrics.
