ACCENTRO Real Estate AG (XTRA:E7S) is trading with a trailing P/E of 12.4x, which is higher than the industry average of 8.7x. Although some investors may
What significance (if any) does the “list price / sell price” ratio have – as an informative statistic about a real estate market? Context: the “list price / sell price” ratio in my home market has hit its highest level since 2006 (about 98 percent). Does this suggest that competition for homes is heating up and increasing the sales price up towards its original listing price?
The difference between the listing price and selling price can tell you whether you’re in a Seller’s Market or a Buyer’s Market. If the listing price is above the selling price, this usually mean there is good supply, but little demand putting the market in a Buyer’s market. If the listing price is below the selling price, this means there is high demand and little supply putting the market in a Seller’s market. Of course this is simplifying things, but it provides a good basis of evaluating the market’s climate.
Inventory levels and days on the market tell a more interesting story on how the housing market is behaving. Of course these statistics vary from region to region. Looking up these statistics will give you a better idea of where your housing market stands, so good luck.