For two weeks in a row in November – and for the first time since March – the ratio of Liv-ex bids to offers on the exchange rose above 50% (i.e. the total value of bids was half that of the total value of offers). But having reached 52% last week it dropped back to 48% today.
A high bid:offer ratio usually points to optimism and a rising market. In general, a ratio above 50% means that prices start to creep up. The number of bids on the exchange has risen substantially since the summer and increased throughout November, only falling back slightly this week.
As we move into 2013 the ratio remains healthy, although it currently points to prices flatlining rather than rising.