Question from reader, regarding the MLS data I report each week:
I have a question about the “Ratio, closing price to original price” data.
Does this include the price reductions? Lets say a unit starts at 500K then reduces to 400K and accepts an offer at ask, is the ratio 100% or 80%?
Great question. I thought about this before I started posting the data.
I report the ratio of ORIGINAL list price to sales price, not the reduced price to sales price.
For example, last week the ratio was 92%. This was original list price to sales price. The ratio of reduced / revised / final list price to sales price was 96%.
The 92% is more accurate; it shows the difference between what the seller thought his / her property was worth and what the buyer thought it was worth, and bought it for.