The ratio of Sales to Active Listings is a good measure of market activity and can be an indicator of trends.
Ratios above 20% are said to indicate a fast-moving “Seller’s Market” and – all other things being equal – will generally lead to rising price pressures.
Ratios below 12% indicate a “Buyer’s Market” where selection is good and there is time to shop around and negotiate; over time prices should be expected to decline.
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Sources: Fraser Valley Real Estate Board, Real Estate Board of Greater Vancouver
With homes in the Lower Mainland pushing the envelope of affordability, it is not surprising to see the most expensive housing category – detached houses in or closer to the city – dipping into Buyer’s Market territory. And at the same time we see the most affordable categories – townhouses and apartments in the Fraser Valley – holding very firmly in a Seller’s Market.
As we approach the spring market, traditionally the busiest time of year for real estate sales, it will be interesting to see how these stats unfold. I’ll keep you posted, and you can always call us for an update.
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