MONEY GLOBE XHousing Markets · Lesson 2
Buyer's market or seller's market?
Two numbers that tell you who has the power
Members
In this lesson
Calculate the sales-to-new-listings ratio and months of inventory, and use them to tell a buyer's market from a seller's.
Key takeaways
- Sales-to-new-listings ratio = monthly sales ÷ new listings.
- In Canada: below ~40% leans buyer's market, 40–60% balanced, above ~60% seller's market.
- Months of inventory = active listings ÷ monthly sales; under ~4 favours sellers, over ~6 favours buyers.
- Local boards publish these numbers monthly — watch the trend, not one month.
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Next lesson: Interest rates and your mortgage
Educational information only - not financial advice.