Market Minute
Divide And Conquer
The sales to list ratio is the final sale price of a home to its list or asking price. The ratio is an indication of whether a home is selling above, at or below list price.
A home with a sale to list ratio greater than 100 percent means that the buyer paid more than the list price, while a sale to list ratio less than 100 percent means that the home sold for less than list price.
This ratio is a very useful metric not only for home sales but any situation where value is determined by negotiation between a buyer and seller. How far the ratio deviates from 100 percent and the direction of deviation provides insight into the motivation of the buyer and seller. As to the real estate market it is generally agreed that a ratio of 40 percent of less is a ‘Buyer’s Market’, 40 to 60 percent is a balanced market and over 60 percent is a ‘Seller’s Market’.
Over the past 12 months in the Comox Valley we saw a 78 percent sales to list ratio and in Campbell River the ratio for the same period was 87 percent, indicating that both the Comox Valley and Campbell River are still in a strong ‘Seller’s Market’.
