Understanding the market
Timing can influence your home’s selling price. Market conditions also vary by neighbourhood and housing type.
Our monthly housing market report summarizes the latest home sale, listing, and price trends. We put these trends into historical context and try to explain conditions in understandable terms. Keeping an eye on market conditions helps you understand the ebb and flow real estate prices. For the most detailed knowledge, you’ll want to consult with a Realtor.
We use a variety of statistics to measure market conditions:
- Sales represent the number of homes transacted through the Multiple Listing Service® (MLS®) in one month.
- Active Listings represent the total number of homes currently listed for sale on the MLS®.
- New Listings represent the total number of listings added to the MLS® in a month.
- Sales-to-active listings ratio measures supply and demand by looking at the total supply of homes for sale compared to sales during the month.
- Buyers’, sellers’, and balanced markets are terms that describe whether the market is putting upward, downward, or no pressure on home prices. Buyers’ markets typically occur when the sales-to-active listings ratio dips below the 12 per cent mark, while sellers’ markets tend to occur when it surpasses 20 per cent for sustained periods.
MLS® Home Price Index
The MLS® Home Price Index (MLS® HPI) measures home price trends in Metro Vancouver and other major markets in the country.
Each month’s sales determine the current prices paid for bedrooms, bathrooms, fireplaces, etc. and apply those new values to the “typical” house model.
The MLS® HPI benchmarks represent the price of a typical property within each market. It takes into consideration what averages and medians do not – items such as lot size, age, number of rooms, etc. These features become the composite of the “typical house” in a given area.