Welcome to City-Data.com forum! Make sure to Contract Ratio June 1, 2009
Posted 06-14-2009 at 05:57 PM by Captain Bill
Contract Ratio indicates how "hot" a market it. It specifically measures the number of active sales contracts under negotiation relative to the supply of active listings.
The higher the number the greater the buying activity relative to supply. If this number rises then it is a sign of growing contract activity and a positive signal for sellers.
Conversely a falling number is a sign of a weakening market - either supply of active listings is increasing or contract activity is slowing, or both.
In a balanced market the value of the Contract Ratio is about 30.
When it lies below 20 the market can be considered "slow" or a "buyer's market".
Above 40 can be considered a "seller's market" .
When it moves above 100 it may be regarded this as evidence of a "buying frenzy".
Below are cities with Contract Ratios over 100 for June 1, 2009:
The higher the number the greater the buying activity relative to supply. If this number rises then it is a sign of growing contract activity and a positive signal for sellers.
Conversely a falling number is a sign of a weakening market - either supply of active listings is increasing or contract activity is slowing, or both.
In a balanced market the value of the Contract Ratio is about 30.
When it lies below 20 the market can be considered "slow" or a "buyer's market".
Above 40 can be considered a "seller's market" .
When it moves above 100 it may be regarded this as evidence of a "buying frenzy".
Below are cities with Contract Ratios over 100 for June 1, 2009:
- El Mirage 85335 - 157
- Queen Creek 85240 - 154
- Maricopa 85238 - 151
- Maricopa 85239 - 149
- Queen Creek 85243 - 140
- Avondale 85392 - 139
- Glendale 85305 - 137
- Phoenix 85037 - 126
- Surprise 85379 - 122
- Surprise 85388 - 122
- Tolleson 85353 - 119
- Gilbert 85295 - 117
- Glendale 85303 - 114
- Phoenix 85043 - 112
- Phoenix 85035 - 110
- Mesa 85212 - 108
- Avondale 85323 - 108
- Peoria 85345 - 106
- Mesa 85204 - 104
- Glendale 85307 - 103
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