Sold-to-Active Ratio
Discover Austin’s Sold-to-Active Ratio with Team Price. Learn about market absorption, home prices, and when it’s a good time to sell in Austin.
The Sold-to-Active Ratio, often called the Absorption Rate, measures the proportion of active listings sold in a given period in Austin, serving as a direct indicator of demand relative to supply and providing a clear picture of market activity. This metric highlights how quickly the market is absorbing available inventory, with higher ratios signaling a strong seller’s market driven by robust demand.
A ratio above 20% favors sellers, indicating strong demand, while a ratio below 10% favors buyers, suggesting weak demand and a sluggish market. This report is important because it offers a straightforward measure of market dynamics, helping stakeholders understand the balance between supply and demand in Austin’s competitive real estate landscape.
It serves real estate agents, homebuyers, sellers, and investors by providing actionable insights into market conditions. Sellers can use this data to determine if high demand makes it a good time to list, potentially fetching premium prices, while buyers can identify opportunities when demand is low, increasing their chances of finding a deal. Agents rely on this metric to set pricing strategies for clients, ensuring they align with current market trends, and investors use it to assess market liquidity and potential returns, such as the likelihood of quick sales or the need for longer holding periods. Historical trends over nearly two decades reveal how demand has waxed and waned with economic and local factors—see the embedded report below for current insights.
