Canada

New Listings For Toronto Area Real Estate Lead The Country In Growth YTD

New Listings For Toronto Area Real Estate Lead The Country In Growth YTD

How is inventory across the Canadian real estate market? According to the latest numbers from the Canadian Real Estate Association (CREA), some regions are being flooded compared to last year. Toronto and its surrounding suburbs are leading in the growth of new listings, and Vancouver is leading in the decline. More important, here’s how that inventory is being picked up.

Toronto and Suburbs Lead New Listings Growth Year To Date

Southern Ontario leads the growth in new listings across the country, according to CREA. Leading new listing growth was the Hamilton-Burlington area, which is popular with Toronto commuters. The region saw 14,613 new listings year to date, a 15.6% increase when compared to the same period last year. In second was Toronto, with 126,998 new listings year to date, a 13.7% increase when compared to the same period. Analysts and developers are going to want to note that both of these are located in the same economic region.

New Listings For Canadian Cities YTD (August)

Better Dwelling, Source: CREA.

Vancouver and Suburbs Lead Drop In New Listings Year To Date

Lower Mainland BC leads in the decline of new listings across the country, according to CREA. Fraser Valley, the region just south of the Greater Vancouver Region, had the largest decline. Fraser Valley saw 21,790 new listings year to date, a 13.2% decline when compared to the same time last year. In second was Greater Vancouver, which saw 39,758 new listings. Tighter inventory in the Lower Mainland isn’t just a rumour, the slowdown of sales are emphasizing existing inventory.

New Listings For Canadian Cities – YTD Change (August)

Better Dwelling, Source: CREA.

Sales To New Listings Ratio

The number of new listings isn’t as important as how the market is absorbing them. To determine this, a commonly used indicator is the sales to new listings ratio. It’s exactly like it sounds, comparing the number of sales to new listings. CREA generally believes that a sales to new listings ratio between 40 to 60 percent is a balanced market. When a market hits balanced territory, it’s best to make sure it’s not just passing through on the way down. To see the a balanced market, it should be in this range for a little while.

Sales To New Listings For Canadian Cities YTD (August)

Better Dwelling, Source: CREA.

Editor’s Note: This is not the same as a sales to listings ratio. Realtors that are firing up their email to complain about this, dust off your textbooks and look at the fundamentals section before writing that email. The number of Realtors that sent in emails last month, that didn’t understand the difference was shocking. You’re helping clients with the biggest buy of their life, put in a little goddam effort. Buyers, if your agent doesn’t understand the difference, find a new agent.

Toronto and Suburbs See Largest Decline In Sales To New Listings

Unfortunately, Toronto and the Hamilton-Burlington region also top the list for the largest decline in sales to new listings. The Toronto sales to new listings ratio fell to 53% year to date, an 18.8% decline from the same period last year. The Hamilton-Burlington sales to new listings ratio fell to 68.7% year to date, a 14.4% decline compared to the same period last year.

Sales To New Listings For Canadian Cities – YTD Change (August)

Better Dwelling, Source: CREA.

London and Ottawa See Greatest Increase In Sales To New Listings

Two other regions in Ontario saw the largest increase in the sales to new listings ratio, London and Ottawa. In first was London, which saw the the sales to new listings ratio rise to 76.5% year to date, a 12.3% increase when compared to the same period last year. Ottawa came in a close second with the sales to listings ratio rising to 61% year to date, a 12% increase from the same period last year. Both of these cities have ratios still favoring sellers.

Canadian real estate is generally cooling down, but only two regions have yet to hit a “buyers market.” If you think this is just right, statistically it is. If you think it’s going to fall further, some markets have a ways to go.

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