there are a number of ways of determining if we are in a sellers
market ... the one used here is the "sales to new-listing ratio" (SNL)
SNL greater than about 55% is considered a SELLER'S market:- which usually
means demand exceeds the supply, prices are rising, homes listed for a shorter period, sellers have more power
in the bargaining
SNL in the approx range 35% to 55%
is considered a BALANCED market:- which usually means supply generally balances demand, slower
pace of price growth, prices are stable growing at about the rate of inflation, homes listed longer, sellers usually do not
get as close to the the asking price as in a SELLERS market
SNL
less than about 35% is considered a BUYER'S market :- which usually means supply generally exceeds demand,
prices are declining, homes are listed longer, and buyers have more power in the bargaining
(the CMHC have recently changed that boundary between the buyer/balanced market from 35% to 40% ...but these
charts are still using the 35% boundary )
this first chart is a detail of what has happened to the SNL from 2007 through to the end
of July 2010 for singlefamily homes in the Peterborough & rural distrcts combined
in Q1 2009 we came very close to entering a BUYER'S market for the first time in nearly
14 years for this set of data ...... but now at the end July 2010 we are almost heading
out of a BALANCED market into a SEELERS market .....
so this is not what was expected as we entered 2009 ... if this recession was going to
have a similar effect on real estate as the last big recession, then the market might have been expected to have
fallen into the BUYERS market zone as we headed through 2009 into 2010 .. so all the low interest rates, incentives,
and stimulus funds are really having a beneficial effect so far...
but
looking at some other categories of property for July 2010, on a table not shown here
in Peterborough
District , singlefamily, condos and multifamily were all in the SELLERS market zone
in
Rural district, waterfront singlefamily, singlefamily with no water access were both in the BALANCED market zone , while
waterfront cottages were in the SELLER market zone
give me a call to discuss
these further
