signs of shifting


Several factors influence our housing market, including mortgage interest rates, inflation, employment, investment, construction, immigration, government assistance programs, and the health of local and world economies. All of these influence the supply and demand of the market which, in turn, affects prices.

There are three classifications experts use to describe the balance of supply and demand in the housing market:

Seller's market
A seller’s market is when there are more people looking to buy then there are homes available. This causes a rise in price above the long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio of 20% or higher.

Buyer's market
In contrast, a buyer’s market is when there are many more homes for sale than there are buyers. As a result, prices increase slower than the long-term average rate of inflation. In extreme circumstances this can cause prices to decline. Typically this is indicated by a sales-to-active listings ratio below 12%.

Balanced market
A balanced market occurs when supply and demand are about the same, with home prices rising in line with long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio between 12% and 20%.

Summary
Over a sustained period of time:
  • a seller's market is represented by a ratio of 20% or higher
  • a buyer's market is represented by a ratio of 11% or lower
  • a balanced market rests between 12-19%
Where might West Vancouver's house market be trending since the beginning of the year compared to last year?  Have a look at the infographic below and to compare to other North Shore property types click on the following titles:
NV apartments                                                               WV apartments
NV townhomes                                                               WV townhomes

In contrast to West Vancouver's buyer market conditions the past five months, North Vancouver detached house market has been holding in more a balanced market territory. Click HERE to compare!

Bottom line, no matter the market conditions, every homeowner wants to make sure they maximize their financial reward when selling their home.  

If you might be considering a move in 2018 we look forward to hearing from you:
June Conway
june@johnjennings.com
604-828-7888
ROYAL LEPAGE SUSSEX-JOHN JENNINGS