Eastern Canadian Real Estate Markets See Big Demand Surge

"Canadian real estate buyers are unusually busy at a time of year when no one’s selling. Canadian Real Estate Association (CREA) data shows the sales to new listings ratio (SNLR) increased across the country in November. The biggest gains were seen in Eastern Canadian real estate markets, while formerly hot markets are starting to ease a little.

Sales To New Listings Ratio (SNLR)

The sales to new listings ratio (SNLR) is an industry indicator used to gauge demand. It’s exactly what it sounds like – the ratio of homes sold, compared to new listings on the market. By looking at this number, we get an idea of how fast the market absorbs homes, compared to people selling homes. It’s surprisingly easy to understand once the numbers are crunched for you.

Generally speaking, the higher this ratio – the more likely prices are to rise. When the ratio is below 40%, the market is a buyer’s market – when prices should fall. Between 40% and 60% is a balanced market, when the market is priced correctly for current demand. Above 60% is a seller’s market, when prices are expected to rise. In fast moving markets, the speed of change often becomes more important. Fast falling ratios tend to act like a buyer’s market, even when it’s in seller’s range."

Click here to read the full article by Kaitlin Last for the Better Dwelling.

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