The ratio is used more as a ballpark guide with both the sellers and the buyers.
Buyers can use the stats to decide where to start their offer. If on average houses are selling at 95% of list price, then buyers have an idea of where the final sale price should be.
Sellers can use the stats to see where their house may sell at and also to see where they should list the house.
When the price of a house keeps being lowered, then sellers can see that it would be best to list closer to the last list price and avoid over pricing the house.
What really is important is what similar houses in the area are actually selling for and use that as a guide.