An active listing is a property currently available for sale on the open market, with no accepted offer or binding contract in place. It represents live inventory and reflects current seller pricing and market positioning.
In real estate practice, active listings provide context for understanding supply levels, competitive pricing and days on market within a given area. While they are not sales, appraisers may reference active listings as supplemental market evidence, particularly in fast-moving or low-inventory markets where recent closed sales are limited. Listings priced significantly above or below closed comparable sales can signal shifting market conditions worth noting in a valuation report.
For loan originators and valuation professionals, monitoring active inventory helps frame whether a subject property is entering a buyer's or seller's market. Buyers and sellers should understand that list price reflects seller expectations, not confirmed market value, making closed comparable sales the stronger benchmark for pricing and appraisal purposes.