When I talk housing statistics, I commonly refer to the "list to sale price ratio". Why is this so important? The list/sale price ratio tells us a lot about the market conditions. For instance, a few years back, when the market was strong, we saw most properties selling at 95% to 100% of list price. When this percentage began to fall, it was a clear indicator of falling values. A smart REALTOR, who continuously watches housing trends and stays on top of the list/sale price ratios, will be able to provide the best advice to both Seller and Buyer clients. With Seller clients, we know pricing is the key to selling. If I see list/sale price ratio dropping, I know it is time to look at the pricing of my listing inventory and make recommendations to my Seller clients to better position them in the market we are given.
I do caution Buyers from using the list/sale price ratio as their sole source of establishing a price to offer on a property. The current average list/sale price ratio for properties sold in Northern Door County is 88.52%. Knowing the trend, I had my Seller client’s price ahead of the curve. Because of this, my average list/sale price ratio so far this year is 93.95%. This means I am netting my Sellers 5.43% more than the market is giving AND we are selling faster with less complication. For information on complications that occur with contracts, see my blog, "Housing Trends & Contract Failures".
