The summer heat has spilled over to the real estate market! This month the Fraser Valley remained in a Sellers Market.
Looking at the table above and seeing the ‘sales ratio’ you may ask how those numbers translate into a Seller’s Market. So we thought that this month we would dive into how we determine the market as a balanced, sellers, or buyers market.
First, what is a Sales Ratio? The Sales Ratio is the current inventory of homes that are selling. It is found by taking the number of sales and dividing
10% sales ratio=1 in 10 homes selling rate
33% sales ratip=1 in 3 homes selling rate
Make sense? We then take those ratios and compare them to benchmarks which determine if the market is balanced, favours buyers, or favours sellers.
- A buyers market would have a sales ratio of 11% or less
- A balanced market would have a sales ratio of 12-20%
- A seller’s market would have a sales ratio of 20% or more