February 2023 Market Update
The latest market data shows that we are in a strong Buyers market. But, some Buyers might be thinking, “Wait a minute, why doesn’t it feel like it?” Let’s explore a few factors that are playing a role:
Inventory levels are rising, but they’re still not at historical levels. With limited supply, it’s not uncommon for prices to stay higher.
The Bank of Canada has raised interest rates eight times. This has put a lot of Buyers in a holding pattern which is the major contributor to the lack of sales.
- Many Sellers have not adjusted their price expectations. This has lead to the misalignment of Buyers and Sellers expectations of value.
In conclusion, the extreme spike into a Buyers market is not due to rising inventory levels but the fact that there have been substantially less monthly sales.
Seller’s market = four months of inventory or less
Balanced market = four to six months of inventory
Buyer’s market = six months or more of inventory
If 100 active listings are available in a month, and 20 homes sold in the that
same month, then there is approximately 5 months of inventory.
