South forest hill residences.The Canadian real estate market has cooled down? Inventory pressure in the housing market eased in February, according to the Canadian Real Estate Association. Although house prices in Canada are still soaring like never before, 80 per cent of major markets are cooling in terms of the ratio of home transactions to new listings (SNLR).Please Visit: South forest hill residences to Get Your VVIP Registration Today!
Demand is expected to fall further as central bank interest rates rise and the term for locking in mortgage rates expires.
The transaction-listing ratio is a tool used to measure the inventory absorption and market heat of the housing market. To put it simply, the transaction-listing ratio is the proportion of housing turnover to the new housing market in that month. When the ratio rises, it shows that the market demand is greater than the inventory, that is, the number of buyers is greater than the number of sellers, the market shows an upward trend. On the contrary, if the ratio decreases, it means that the market demand is less than the inventory and the market is cooling.
When the transaction-listing ratio is higher than 60%, it is the seller’s market, when the market situation is tight, and the house price shows an upward trend.
When the transaction-listing ratio is less than 40%, the market turns to the buyer’s market. At this time, the overall real estate market is loose and prices are lower.
If the transaction-listing ratio is between 40% and 60%, it means that the market supply and demand is in balance.
Although the Canadian real estate market is still tense, inventory pressure is gradually easing.
Affected by seasonal adjustment, the national transaction-listing ratio fell to 75.2% in February, down 13.7% from the previous month, the lowest rate since the property market began the second wave of rally in September last year. So even if the market is still nervous, the 13% plunge heralds a change in the direction of the housing market.
Seasonally adjusted transaction-listing ratio in major Canadian real estate markets and regions (Source: CREA; Better Dwelling).
Inventory pressure in more than 80 per cent of Canada’s major property markets has eased since last month. In 22 of the 27 major markets listed by the Canadian Real Estate Association, new listings are growing faster than turnover.
Quebec’s two market ratios have increased slightly, but the growth rate is less than 0.5 per cent, and there is no tension.
However, the housing market is generally tight in the three prairie provinces, including Regina (+ 4.2%), Edmonton (+ 2.8%) and Winnipeg (+ 1.7%).
Monthly comparison of seasonally adjusted transaction-listing ratios in major Canadian real estate markets and territories (Source: CREA; Better Dwelling).
As representatives of the high-priced real estate market, the housing markets in Toronto and Vancouver are rapidly approaching the equilibrium point.
In February, the transaction-to-listing ratio of the Toronto real estate market fell to 65.9%, down 23% from the previous month. Vancouver was similar, with the deal-listing ratio falling to 62.3%, down 5.5% from a year earlier.
From the perspective of supply and demand in the housing market, the two markets are still in a state of lack of inventory, and house prices continue to rise, but compared with the previous transaction-listing ratio of more than 100%, the real estate market situation is gradually easing.