We recently shared stats on Sales to Active listings in Metro Vancouver. Here's what it means...
We recently shared stats on Sales to Active Ratios (SAR) throughout Metro Vancouver, to show what's selling by neighbourhood.
SAR, also called 'list to sale ratio', is the percentage of available listings that have sold. A higher SAR means a larger portion of the available listings has sold, which indicated the buyer demand, or strength, of a particular area. As defined by the Vancouver Real Estate Board, SAR of 20% or higher indicates a seller's market, where there are more people looking to buy then there are homes available. If you’re listing a home in an area with a minimum of 20% SAR, you’re in a good position to sell!
Given the slower real estate market of late, it’s also important to know that the 12% - 20% is still considered a balanced market. A balanced market occurs when supply and demand are about the same, with home prices rising in line with the long-term average rate of inflation.
On the flip side, a buyers market is typically less than 12% SAR, meaning there are more homes for sale in that area because a smaller percentage of the available listings are selling. These are great areas to watch if you’re in the market for a new property.
SAR can be a great indicator, but keep in mind there are many factors to consider when buying or selling.
If you’re in the market for a home, condo or townhome, tell us what you'd like to know. We’re always happy to hear from our readers!
