"You better make an offer quickly—inventory is moving fast." Sound familiar?

Every weekend, real estate agents across the country use this exact line. But here's the million-dollar question: How do you know if it's true or just skillful salesmanship?

The Supply Pressure Score cuts through the noise with cold, hard math. One number tells you whether a market is genuinely heating up or just blowing hot air.

What Exactly Is Supply Pressure Score?

Think of the Supply Pressure Score as a market thermometer. Just like a fever tells you something's wrong with your body, this score tells you when a housing market is running hot or cold. But instead of measuring temperature, we're measuring something far more valuable: the relationship between fresh inventory coming onto the market and existing inventory sitting there waiting to be sold.

The beauty of this metric lies in its simplicity. While other market indicators can be confusing or lag behind reality, the Supply Pressure Score gives you a real-time pulse on market dynamics. It answers the fundamental question every real estate professional needs to know: "Is this market tilting toward buyers or sellers?"

The Formula: Simple Math, Powerful Insights

Here's where we pull back the curtain. The Supply Pressure Score isn't some black-box algorithm—it's refreshingly straightforward:

Supply Pressure Score = (New Listings ÷ Active Listings) × 100

That's it. But don't let the simplicity fool you. This formula captures something profound about market behavior.

Let's break down why each piece matters:

New Listings represent the fresh supply hitting the market. These are the homes that just became available, reflecting current seller sentiment and market conditions. When new listings surge, it often signals that sellers are feeling confident about finding buyers.

Active Listings represent the total inventory currently available. This is everything sitting on the market right now, from the house that listed yesterday to the one that's been lingering for months.

The magic happens when you divide new by total. You're essentially asking: "What percentage of current inventory is brand new?" A high ratio means the market is churning quickly—new supply is constantly refreshing the available inventory. A low ratio suggests inventory is stagnating, with the same homes sitting on the market for extended periods.

Real Markets, Real Numbers

Let's look at some actual data to see how this plays out in practice (numbers are from August 2025).

Atlanta's Heated Market (Score: 32.5)

Atlanta is currently showing a Supply Pressure Score of 32.5, which sits in the higher range. What does this mean in practical terms? It tells us that roughly one-third of Atlanta's active inventory consists of brand-new listings. This suggests a dynamic market where properties are moving and sellers are actively bringing new supply online.

For investors, this score indicates opportunity. High supply pressure often precedes price appreciation as the market demonstrates both liquidity (things are selling) and confidence (sellers are listing). For buyers, it means more choices but also more competition as the market stays active.

Austin's Moderate Pressure (Score: 26.52)

Austin presents a different story with a Supply Pressure Score of 26.52. This moderate reading suggests a balanced market where roughly one-quarter of inventory is fresh. Combined with strong rental fundamentals (average rents around $1,767), this score indicates the sweet spot many investors seek: active without being frenzied.

Corpus Christi's Stagnant Signal (Score: 17.59)

Now consider Corpus Christi's Supply Pressure Score of 17.59—a clear low-pressure reading. Only about 18% of active inventory consists of new listings, suggesting properties are sitting longer and fewer sellers are entering the market. This often signals a buyer's market where negotiation power has shifted and price appreciation may be limited.

These three markets—analyzed through the same lens using REMarketPulse data—tell completely different stories that traditional metrics might miss.

How to Use Supply Pressure Score in Your Decisions

The beauty of this metric lies in its universal application. Whether you're an investor, buyer, or agent, the same score tells different but equally valuable stories:

High Scores (30+) signal seller confidence and market velocity. Investors see opportunity for appreciation. Buyers prepare for competition and quick decisions. Agents focus on speed and positioning.

Moderate Scores (20-30) indicate balanced conditions. Investors find sustainable growth potential. Buyers gain negotiating power and decision time. Agents emphasize market knowledge and strategic timing.

Low Scores (Under 20) reveal market stagnation. Investors approach cautiously or look for distressed opportunities. Buyers take their time and negotiate hard. Agents shift to buyer representation and motivated seller strategies.

Why This Metric Matters Now

In today's complex real estate environment, traditional metrics often mislead. Days on market can be gamed. Average prices lag reality. Headlines about interest rates don't tell you what's happening on your street.

The Supply Pressure Score delivers real-time market sentiment from the people who matter: actual buyers and sellers making real decisions with real money. It's forward-looking, manipulation-resistant, and surprisingly predictive of market shifts.

Ready to See Your Market's Score?

The next time someone tells you the market is "hot" or "cooling off," you'll know the right question to ask: "What's the Supply Pressure Score?"

Because in real estate, as in life, the best decisions come from having the best information. And the best information comes from metrics that actually measure what matters.

Want to see how your market measures up? View Market Dashboard → to explore Supply Pressure Scores and dozens of other market intelligence metrics across 374+ metro areas. Because when it comes to real estate decisions, you shouldn't have to guess.