Active-to-Sold Ratio
Discover Austin’s Active-to-Sold Ratio with Team Price. Learn when it’s a good time to sell or buy with real estate metrics on market health and home prices
The Active-to-Sold Ratio calculates how many months it would take to sell all active listings in Austin at the current sales pace, serving as a fundamental gauge of market balance and inventory levels in the real estate market. This metric helps determine whether the market leans toward sellers or buyers by providing clarity on supply absorption rates, which directly influence pricing and competition.
A ratio below 5 months favors sellers, indicating low inventory and high demand, while a ratio above 7 months favors buyers, suggesting high inventory and slower sales. This report is essential because it offers a direct measure of market health, helping stakeholders understand whether conditions are favorable for buying or selling in Austin’s competitive housing market.
It serves real estate agents, homebuyers, sellers, and investors by providing a reliable indicator of market dynamics. Sellers can use this data to decide if it’s a good time to list their property when inventory is low, potentially commanding higher prices, while buyers can identify opportunities to negotiate when inventory is high and competition is lower. Agents rely on this metric to set realistic expectations for clients, ensuring pricing strategies align with market conditions, and investors use it to assess market liquidity and potential investment risks, such as holding costs in a slower market.
Historical data over the past two decades shows how this ratio has fluctuated with economic cycles and local demand—view the embedded report below for up-to-date details
