by Jim Bearman

When we look at housing market stats, one important measure is the Sales to Listing Ratio, which defines the balance between supply and demand in a given market area.  To calculate the ratio, we divide the number of sales by the number of new listings.  It is generally agreed that a ratio of 40% or less is a “Buyers’ market”, 40 to 60 % a “balanced market” and over 60 % is a “Sellers’ market”.

In a Buyers’ market there are considerably more listings for sale than prospective buyers.  This puts downward pressure on real estate prices as sellers compete for buyers. Conversely, when we are in a Sellers’ Market, there are more buyers competing to purchase the available homes and this results in upward pricing pressure.

Over the past 12 months In the Comox Valley we saw a 65 % Sales to Listing Ratio (in effect, 65 out of every 100 listings sold).  In Campbell River the ratio for the same period was 61%. In both markets we are trending up into a Sellers’ market.  The sales to listing ratio has increased over last year; The Comox Valley by 8% and Campbell River by 5%.

These ratios are based on Single Family market activity across the full price range.  We have noted variations within the different price bands and geographical areas.

Jim Bearman

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