Adlaw Appraisals WEEKLY sales to listing ratio update (September 9, 2022)
Looking at 50 different market areas, for both single family and multi family (townhomes and apartments) in the GVA, Fraser Valley and Okanagan regions.
What is a sales to listing ratio? The ratio between the number of homes sold in the last 30 days versus the number of total listings in the market.
Why is it important? It is a point in time indicator of demand and supply of housing in a specific area and provides excellent information for buyer’s, seller’s, realtors and valuation experts who cannot afford to wait 3-4 weeks until monthly stats are available. Generally speaking, a downward market (buyer’s market) is when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure (seller’s market) when it surpasses 20 per cent over several months.
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Fraser Valley, Greater Vancouver and Central Okanagan (Single Family)
Fraser Valley, Greater Vancouver and Central Okanagan (Townhomes and Apartments)
*Red indicates a buyer’s market (<12%), yellow is a balanced market (12-20%) and green is a seller’s market (>20%)
**Statistics based on sales from August 9 to September 9, 2022 and active listings as of September 9, 2022.
Where are Prices Going? (Fraser Valley and GVA)
It is mostly a buyer’s market across the board in GVA and Fraser Valley, except for North Delta which shows a a ratio of 21.15% which is actually a seller’s market. Some areas showing a balanced market include Cloverdale, Burnaby, Coquitlam and Port Coquitlam. The average sales to listing ratio for Fraser Valley is 8.53% and for GVA is 8.93%. Both have been well under 12% for months which will push downward pressure on prices. Areas of greatest concern (greatest opportunity?) include: Mission, Chilliwack and Abbotsford with extremely low sales numbers compared to listings.
Townhouse / Apartments:
Multi Family units are fairing much better across the board with many areas showing a balanced market. The overall sales to listing ratio in Fraser Valley is 13.57% and for the GVA is 16.45%. This shows that despite rising interest rates, the more affordable properties are still moving well in comparison the # of units listed.
In summary, single family is hurting across the board and there will be lots of buying opportunities for those who have cash, and have a strong negotiating position. Any areas under 5-10% are areas one would want to make low-ball offers and find a good deal. Sales of single family in the more expensive neighbourhoods are way down and there seems to be some buying happening in the cheaper areas as well as areas of the Okanagan. Multi Family is showing stronger signs with demand matching supply in most areas, as buyer’s are shifting towards more affordable housing types (and more affordable locations) across the two regions.
Let our team’s knowledge of local markets help you get the value you deserve.
Thank you for reading!
Adam Lawrenson, AACI
Owner, Adlaw Appraisals