How’s The Market?

The one question we seem to be hearing over and over again is, "How's the Market?"

 It's a great question, given that market conditions play an important role in property prices, competition and average selling times.

The market can typically fluctuate within three types of market conditions:

  • 1. A Seller's Market,
  • 2. A Buyer's Market, and
  • 3. A Normal or Balanced Market

One Way to Determine Market Conditions

A good indicator of market conditions is to interpret the number of months of listing inventory on the market:

  • 4 to 6 months of inventory equals a Seller's Market
  • 6 to 8 months of inventory equals a Normal Market
  • 8 to 10 months or more equals a Buyer's Market

So How is This Arrived At?

Take the total number of listings on the market and divide that by the average number of sales per month. This gives the number of months of listing inventory. 

Breakdown by City to 3rd Quarter

The following breakdown is based on MLS listings and sales activity for the first three quarters of 2008 by city.

City

Month's Inventory

Market Conditions

Niagara Falls

8

Normal Market

St. Catharines

4

Seller's Market

Thorold

6

Normal Market

Fonthill/Pelham

8.9

Buyer's Market

Welland

5

Seller's Market

Port Col/Wainfleet

10

Buyer's Market

Fort Erie

10.9

Buyer's Market

Niag-on-the-Lake

14.5

Buyer's Market

Lincoln/West Linc

8

Normal Market

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