Toronto and Vancouver realty markets are the fastest cooling
The Canadian real estate market continues to get cooler. Canadian Real Estate Association (CREA) numbers show declines to the sales to new listings ratio (SNLR) in all but 3 major markets. The declines to SNLRs were largest Greater Toronto and Vancouver.
The sales to new listings ratio (SNLR) is the indicator CREA uses to determine if your market is hot or not. When the SNLR is between 40 and 60 percent, the market is considered balanced. If the ratio is above balanced, the market is a “seller’s market,” typically meaning higher prices. When the market is below balanced, it’s called a “buyer’s market,” and prices typically decline. Simple enough, but there is a big warning when using this indicator.
The highest SNLRs are located in London, Windsor, and Ottawa. London had an SNLR of 77.1 in August, compared to 79.2 last year. Windsor hit 76.5, compared to 79.4. Ottawa, the largest of the three, reached 68.4, up from 61.8 last year. All three markets are in Southern Ontario.