Why We Use Pending Ratio — and Why It Matters Right Now
A short methodological note on the metric Primpted treats as the cleanest read on real-time market leverage.
When you read a Primpted metro briefing, the underlying signal is almost always the pending-to-active ratio. This note explains why.
What it measures
Pending ratio is the count of listings under contract, divided by the count of listings still active on the market. It captures real-time demand intensity better than absorption rate, days-on-market, or price-reduction share — each of which lags or measures something adjacent.
A ratio of 1.0 means as many listings are going under contract each month as remain available. A ratio of 0.2 means demand is absorbing only a fifth of available supply.
Our thresholds
We use absolute thresholds, not YoY direction:
- Above 0.8: Strong seller's market.
- 0.6 - 0.8: Seller-favored.
- 0.4 - 0.6: Balanced.
- 0.2 - 0.4: Buyer-favored.
- Below 0.2: Strong buyer's market.
Why YoY change misleads
A metro can have a +20% YoY move in pending ratio and still be deeply buyer-favored in absolute terms. Miami in mid-2026 is the clearest current example: the YoY direction is positive, but the absolute reading sits firmly below 0.3. Reporting on direction alone produces the wrong headline.
This is why Primpted commentary always anchors to absolute levels first, with YoY context provided as a secondary lens — never as the framing.
Methodology
Pending ratios computed monthly from Realtor.com's residential listing series for each CBSA.