Following a slow start to the year, national home sales in Canada were on the rise for the third month in a row.
In July, national home sales were up 1.9% from June, with prices increasing by 1% to an average of $481,500, according to the Canadian Real Estate Association’s latest report.
However, according to Zoocasa, national data doesn’t necessarily reflect market conditions in their own regions.
This is why it’s important for buyers and sellers to know what’s happening at a local level, which can be measured using the sales-to-new listings ratio by dividing the number of sales by the number of new listings over a specific time frame.
This metric reveals what percentage of newly-listed homes are being snapped up, or are languishing on the market, ultimately providing buyers and sellers insight to the level of competition they’ll face when entering the market.
According to CREA, a ratio between 40% to 60% shows a balanced market, while above and below that threshold indicate sellers’ and buyers’ conditions.
While Canada as a whole is balanced with a ratio of 56%, this number differs greatly from coast to coast as factors like income, economy and housing supply come into play.
To put this in perspective, selling a home in St. John’s, Newfoundland will be very different than in Toronto or Vancouver.
So, for those looking to buy or sell, what are the best markets in Canada and which have changed dramatically over the past year?