One of the things we often look to is the ratio between the number of new listings and the number of sales in any given month. When the ratio falls below 40%, we typically are looking at a buyers market and when it climbs above 50%, we consider that to be a sellers market.
The rule of thumb is that if there are six or less months of inventory on the market, we are in a seller’s market with too little inventory and upward pressure on prices. If there are 7 or 8 months of inventory on the market, we are in a flat or transitional market with stable prices and good opportunities for both buyers and sellers. If there are nine or more months of inventory on the market, we are in a buyer’s market with downward pressure on prices.
According to data provided by the Canadian Real Estate Association, we currently have less than 4 months of inventory available in our region – a strong sellers market. That means buyers do not have the luxury of time and negotiation on their side and sellers have excellent opportunities to sell quickly for top dollar.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg