JOSH BUCHANAN

September 7, 2016

Usually when I analyze different categories of the real estate market, I look at absorption rates or the “month of inventory” method (as seen in post #2 and post #49) but I usually rely on the sales-to-listings ratio for my monthly reviews and to determine the future of the market based on historical behaviour. This post, however, uses the sales-to-listings ratio analysis to take a look at specific categories of homes to determine how each category is balancing out.

What I’ve done below is broken down homes into specific categories then listed how many sales and listings those categories have had year-to-date up until August 30th along with the ratio. Based on MLS numbers as of the end of August 2016, this is where we are currently at:

(“Other condos” category includes detached houses that are condos as well as a mixture of apartment-style and townhouse-style that have been improperly classified in the system by realtors).

Judging by the data, there are really no surprises here compared to my other two posts. The most balanced segment of the market is detached houses under $300,000 which is actually well-balanced, followed by detached houses under $500,000. Luxury houses over $500,000 and condos are where things really start to get ugly. If you’re trying to sell a condo or luxury house right now, times are tough, especially if your house is in the $800,000+ range or if your condo is an apartment-style or above $500,000.

To see what kind of impact these ratios can have on prices, see post #60.

The views represented are solely those of Josh Buchanan and are independent from any professional organization.