Analyzing and Understanding your Market: Listed vs. Sold

In the previous post we looked at the List-to-Sales Price Ratio.  In this post last post of this series  we'll be looking at Listed vs. Sold.

Listed vs. Sold is a measure of the number of homes listed vs. the number sold (aka "real buyers") in a given market or market segment over a given period of time.  This can be expressed as the percentage sold.  While it is not a true odds calculation, it can be one way to answer the question, "What are the odds of selling my home at a given price in a given period of time?"

Here is a table showing the number of properties for sale, the number of properties sold, and the percentage of properties sold for each price segment in a given period, for an imaginary market. 

Looking at this table we can see the relative activity of each price segment.  In this case the $500k-$599k price segment is the most active.  Compared to the $2M+ segment, more than three times as many of the homes on the market sold during the period! 

Knowing this you can sit down with your sellers and talk to them about the odds of selling their home at a given price point. 

You can also do the same exercise with Pending Sales for another view of current market conditions, and you can vary the period and track this over time to identify trends in the market and market segments.  Looking at the Sales-to-Expiration measure will also illustrate trends in demand.