What’s a Buyer’s Market or Seller’s Market?

Nov. 6, 2017 | FAQS | By Rossetti Team

MARKET FAQS //

Have you heard the terms ‘Buyer’s Market’ and ‘Seller’s Market’ and wondering what they mean?

They are terms used to describe the relative supply and demand of the housing market.

Supply = to Listings.
Demand = to Sales.  

The ratio of Supply to Demand, or Sales-to-Active listings, over a sustained period of time determines the market. (this is also sometimes referred to as the absorption rate)

Balanced Market

A balanced market occurs when the sales-to-active listing ratio is between 12-19%. In a balanced market prices should rise in-line with the long term average of inflation.

Seller’s Market

A Seller’s market is when there is a higher ratio of sales to listing, typically indicated by a sales-to-active listings ratio of 20% or higher. This causes upward pressure on pricing.

Buyer’s Market

A Buyer’s market is when there is a lower ratio of sales to listing, typically indicated by a sales-to-active listings ratio of 11% or lower. This causes downward pressure on pricing.

How's the Market Now? 

Wondering where the market is currently at? For monthly updates check out our Stats page for North and West Vancouver market statistics. One word of caution, although the overall market may indicate one trend, property types (condos, townhomes, houses) or neighbourhoods may be different.

Still want more information or have questions about the market? We’d love to chat. Contact us at the form below.


Via: REBGV 


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