The Lenfesty Report March 2019

(March 29, 2019 )

How’s the Market?
After several years in a “Seller’s Market” we are now just entering a new phase, a “Buyer’s Market”.

For those in the industry, the definitions of these terms is quite specific: if the ratio of sales to total-listings-available is above 20%, it’s a Seller’s Market. If that ratio falls below 12%, we are in Buyer’s Market territory.

For all property types, the sales-to-active-listings ratio was 12.7% in February in Greater Vancouver. Markets that stay in Buyer’s territory for a few months or more tend to put downward pressure on prices.

It’s important to note that the 12.7% ratio for last month applies to all property types and all sub areas in the region. Detached houses in the higher-priced neighbourhoods have likely been in a Buyer’s market for some time already – and sure enough they have seen the most downward price pressure.
It’s also good to remember that market cycles – whether in real estate or the stock market or the economy in general – are a healthy and normal part of free markets. Down cycles correct over-exuberance, reset prices to match economic conditions, help to clean out market anomalies, and give buyers on the cusp of affordability a chance to enter the market.