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There is a lot of news circulating about the Real Estate market & everyone is talking about a “shift.” I’m seeing headlines talking about the market moving into a Balanced -and in some cases- even a Buyers market. In this report, I want to break down exactly what categorizes a buyers market, from sellers market to balanced market; and, what that means for people trying to buy & sell homes today. 

In order to identify and make sense of what type of real estate market we are in across the different asset classed (Detached, Townhomes and Condos), I calculate Months of Inventory (MOI).

This is a fancy way of calculating the absorption rate. MOI is the amount of time (or months) it would take for all current MLS® listings to sell given that no new listings come onto the market.

MOI measures how many active listings were still available at the end of that month and of those, how many actually sold.

Months of Inventory = Active Listings / Sales

0 – 3 Months = Sellers Market

Anything within the 0-3 month range is classified as a Sellers market. If the Active listings divided by the total sales in a given month comes out to 1; this means almost everything is selling out, or is taking 1 month to absorb. 2 months of inventory means 50% of new listings sell within 1 month. 3 months of inventory means 33% of homes are selling within the first 30 days on the market.

In a Sellers market, we see price points increase and inventory levels decrease. This is the type of market we have been in over the last two years in the Fraser Valley and Greater Vancouver regions.

4 -6 Months = Balanced Market

This type of market sees prices hover and 25% to 16.6% of listings sell within the first 30 days. Buyers have time to shop around and put subject clauses into their offers, but homes are still selling.

6+ Months = Buyers Market

Inventory levels are rising, prices are decreasing slightly. We have not quite reached a buyers market, however as you will see below, the Fraser Valley detached market is getting close.

Active listings have more than tripled since December 2021. Although we are not yet in a Buyers market, some asst classes in certain neighbourhoods are getting close.

May 2022, Fraser Valley & Greater Vancouver

Detached M.O.IMarket Type 
Fraser Valley 5.6Balanced
Greater Vancouver2.8Sellers

Townhomes M.O.IMarket Type 
Fraser Valley3.4 Balanced
Greater Vancouver2.2Sellers

CondosM.O.IMarket Type 
Fraser Valley 2.6Sellers
Greater Vancouver2.9Sellers

Langley only

Langley  M.O.IMarket Type 
Detached 3.8Balanced
Townhomes 2.8Sellers
Condos 2.2Sellers

March 2022, “The Peak”, Fraser Valley & Greater Vancouver

Detached M.O.I Market Type 
Fraser Valley 2.0Sellers
Greater Vancouver 1.8Sellers

TownhomeM.O.IMarket Type 
Fraser Valley 1.5Sellers
Greater Vancouver1.5Sellers

Condo M.O.IMarket Type 
Fraser Valley 1.0Sellers
Greater Vancouver 1.4Sellers

Langley Only, March 2022 “The Peak”

Langley  M.O.IMarket Type 
Detached 1.6Sellers
Townhomes 1.0Sellers
Condos 0.9Sellers

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