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Oakwyn Realty Ltd.
101 - 3151 Woodbine Drive North Vancouver, BC V7R 2S4
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Unlike average or median sales prices—which can be easily skewed upward by a few luxury waterfront sales or downward by a wave of smaller studio sales in a given month—the HPI measures the value of a typical, benchmark property over time.
The Importance of Understanding the HPI
Average and median prices only tell you what sold last month, not whether home values are actually rising or falling
The Sales to Active Listings Ratio (SAR) is the percentage of listings sold versus the number of active listings in a day.
In a seller’s market, the sales-to-active listings ratio is greater than 20%.
In a balanced market, the sales-to-active listings ratio is between 12% to 20%.
In a buyer’s market, the sales-to-active listings ratio is lower than 12%.
Sales to Active RatioThe Sales to Active Ratio, also known as the List to Sales Ratio, is an important statistic to keep an eye on in the real estate market. It is one of the only stats that tells us how a market is doing.
Simply looking at how many listings have sold in an area does not tell you much. The sales volume means nothing without comparing the number of listings on the market.
By knowing what the current market is, you make smarter decisions in the real estate market. It better informs you about the likelihood of selling or buying real estate today.
What is a seller’s market in our local real estate market?A seller’s market occurs when there is a shortage of listings on the market or more potential buyers than homes. This means the market is favourable to people selling their homes.
For a market to be a strong seller’s market in our local real estate market, the ratio has to be 20% or higher. 20% – so for every 100 listings – if more than 20 sell in 1 day and 100 new listings come out that day – that’s considered a seller’s market.
What is a balanced market in our local real estate market?A balanced market occurs when there is more or less the same amount of listings on the market as there are potential buyers.
For a market to be a balanced market in our local real estate market, the ratio has to be between 12% and 20%. For every 100 listings – if between 12 and 20 listings sell in 1 day and 100 new listings come out that day – that’s considered a balanced market.
What is a buyer’s market in our local real estate market?A buyer’s market occurs when there is a surplus of listings on the market or more homes for sale than potential buyers. This means the market is favourable to people buying homes.
For a market to be a strong buyer’s market in our local real estate market, the ratio has to be lower than 12%. So for every 100 listings – if less than 12 sell in 1 day and 100 new listings come out that day – that’s considered a buyer’s market.
Oakwyn Realty Ltd.
101 - 3151 Woodbine Drive North Vancouver, BC V7R 2S4