Updated over 11 years ago on . Most recent reply
Buyer/Seller Ratio - Relevant?
A French Zillow-ish site (MeilleursAgents.com) has mapped out the buyer/seller ratio for its markets. They consider it a more reliable indicator of where the market is going than anything else.
Their rule of thumb:
more than 3 buyers for every seller: appreciating market
2-3 buyers for every seller: stable market
less than 2 buyers for every seller: depreciating market
The fluctuations are impressive: Paris went from 6 to 1,4 buyers for every seller in a few years. Because of this, they expect the prices to drop double the official estimates.
Now I wonder, is this a reliable indicator? Does anyone have experience with this, because google only talks of this indicator for stock options.