Sales-to-Active Listings Ratio
The Sales-to-Active Listings Ratio is a popular method in determining if the housing market is a "buyers market" or a "sellers market". It's calculated by dividing the number of sales by the number of active listings for a given period.
Example 1: 500 sales / 5000 active listings last month = 10% sales-to-active-listings-ratio
Example 2: 1250 sales / 5000 active listings last month = 25% sales-to-active-listings-ratio
The following chart indicates how various boards measure that ratio:
A buyers market of 14% or less means that buyers are at an advantage when purchasing a property. Greater then 20% sellers are at an advantage when selling their property.