3-Year Trend in the Ratio of Selling Price to Asking Price for the Prescott Area

The chart below shows the 3-Year Trend in the Ratio of Selling Price to Asking Price for the Prescott Area. The chart shows that the ratios run from a low of 91% in March of 2011 to highs to a range of 94% to 96% most of the time. As our inventory of homes dropped in the last few months of 2011, the ratios are near 95.5%.

This chart can be interpreted to mean that a Buyer can reasonably expect to pay between 90% and 100% of the asking price. A home that is priced to sell quickly can sometimes attract enough potential buyers that the selling price could actually be above the list price. On the other hand, an overpriced home can often be purchased at a price considerably below the 90% mark.