Altos.re is a real estate analytics platform that provides market data and insights to help buyers, sellers, and real estate professionals make informed decisions.

Altos manages real estate data for all cities and zip codes in the United States. They provide market information for both single family properties and condos.

Market Action Index

The Market Absorption Rate represents the rate at which available homes in a specific real estate market are sold during a given time period. It’s a metric that helps determine the demand and supply balance, effectively giving insights into whether it’s a buyer’s or a seller’s market. 

How to Calculate:

Determine the Number of Sold Listings: Start by finding out the number of homes sold in the last month (or another chosen period). Determine the Number of Active Listings: Find out the number of currently available homes for sale. Calculate the Rate: Divide the number of sold listings by the number of active listings. This gives you the absorption rate for that period.

Interpreting the Rate:

High Absorption Rate: If the rate is high, it indicates that a larger proportion of the available inventory is being sold. This typically signifies a seller’s market, where demand outpaces supply. 

Low Absorption Rate: Conversely, a low rate means that a smaller portion of inventory is being sold, which can be indicative of a buyer’s market, where supply exceeds demand. 

By understanding the Market Absorption Rate, real estate professionals, buyers, and sellers can make more informed decisions about pricing, negotiation strategies, and timing their entry or exit from the market.

How Altos.re Can Help Understand the Current Real Estate Market

1. Identifying Market Trends:
   • By providing real-time data and historical trends, Altos.re helps users identify whether the market is trending up or down, which is crucial for timing buying or selling decisions.
2. Pricing Strategy:
   • With access to detailed pricing information and dynamic pricing models, users can set competitive prices for their properties or determine fair purchase prices.
3. Market Health Indicators:
   • Indicators such as average days on market and inventory levels give insights into market health and activity, helping users gauge the level of competition and market saturation.
4. Localized Insights:
   • Detailed neighborhood-level data allows users to understand specific local market conditions, which is essential for making informed decisions in highly varied real estate markets.
5. Comparative Analysis:
   • Tools for comparative market analysis enable users to compare similar properties, ensuring they are making informed decisions based on the latest market data.
6. Forecasting:
   • Predictive analytics and future market predictions help users plan their investments or sales strategies by providing a forward-looking view of the market.

By leveraging the data and tools provided by Altos.re, users can gain a comprehensive understanding of the real estate market, make data-driven decisions, and optimize their real estate strategies for better outcomes.

Understanding these factors can help homeowners set realistic expectations about their property’s value, even as they make improvements to enhance its appeal.