Real Estate Market: Sellers No Longer in Dominant Position
For several years, home sellers have become accustomed to having the upper hand in negotiations. However, in recent months, sales have slowed in most areas of Québec and the number of properties for sale has increased. As a result, sellers have been gradually losing their dominant position. In this document, we will examine market conditions – meaning the balance of power between buyers and sellers – in different geographic areas and according to property category.
Market conditions are determined using the number of months of inventory , which is defined as the ratio of the number of properties for sale (listings) to the number of transactions concluded in the last 12 months. The Annex at the end of this document provides more information about the calculation and interpretation of this measure, as well as the criteria we use to determine whether market conditions show a seller’s market, a balanced market or a buyer’s market.