Sales to Active listing ratio has long been used by professional Realtors to determine the environment within any given market.
By measuring the number of sales against the current number of active listings we can determine the pace at which inventory is turning over.
Sellers market conditions are seen to be at a 20% sales to active ratio or greater.
Balanced market conditions are witnessed at the 10% to 20% sales to active ratio range.
Buyers Market conditions occur when we see a sales to active listing ratio below 10%