Housing Market Glossary
Every figure on our market reports is one of a handful of measures the real estate boards publish. Each is explained here once: what it is, how it is worked out, how to read it, where the boards differ, and what it is in each market right now.
By the HousingPortal.ca team · Updated
Sales-to-new-listings ratio
The sales-to-new-listings ratio is the number of homes sold in a period divided by the number newly listed for sale in it, as a percentage. It is the most used single measure of whether a housing market favours buyers or sellers.
Also called: SNLR, sales to listings ratio.
Months of inventory
Months of inventory is the number of homes for sale divided by the number sold in the month: how many months it would take to sell everything on the market at the current pace if nothing new were listed. Also called months of supply.
Also called: months of supply, MOI.
Days on market
Days on market is the number of days between a home being listed and its sale being agreed, averaged over the homes sold in the month. It measures how fast homes are selling, and rises before prices fall.
Also called: DOM, average days on market, listing days on market.
Benchmark price
The benchmark price is what a typical home in an area would sell for, estimated by the MLS Home Price Index (HPI) from the homes that sold. The index prices a representative home of set size, lot, age, rooms and location month after month, so unlike an average it does not move when the mix of homes sold changes.
Also called: MLS Home Price Index, HPI, typical home price.
Average and median home price
The average home price is the total paid for the homes sold in a period divided by their number. The median is the middle sale: half sold for more, half for less. Both describe what buyers paid, and they differ because a few very expensive sales lift the average far more than the median.
Also called: average sale price, median sale price.
Sold-to-list price ratio
The sold-to-list price ratio is the average sale price of the homes sold in a month as a percentage of their asking price. At 100% homes sell for what they are listed at; above it, for more; below it, buyers are negotiating discounts.
Also called: sale-to-list ratio, sale price to list price.
Active listings
Active listings are the homes for sale on the MLS system at a point in time, usually the end of the month. They are the market's inventory: the supply buyers can choose from, and the stock that months of inventory and the sales-to-active-listings ratio divide into sales.
Also called: inventory, homes for sale, listings inventory.
New listings
New listings are the homes put up for sale on the MLS system during a month. They are the market's flow of supply, set against sales in the sales-to-new-listings ratio, and the first thing to move when sellers' expectations change.
Also called: listings, homes listed for sale.
Buyer's, seller's and balanced markets
A seller's market is one where buyers outnumber the homes for sale, so listings sell fast, often above asking, and prices rise. A buyer's market is the reverse: listings outnumber buyers, homes take longer to sell and prices soften. In between, the market is balanced. Which it is gets measured, not guessed, from the ratio of sales to listings.
Also called: buyer's market, seller's market, balanced market.
Sales-to-active-listings ratio
The sales-to-active-listings ratio is the number of homes sold in a month divided by the number for sale, as a percentage: the share of the inventory that sold. It is Greater Vancouver's measure of market balance, and the inverse of months of inventory.
Also called: absorption rate, sales to active ratio.
The information presented on HousingPortal.ca is intended for general illustrative purposes only. While the information is believed to be reliable, it cannot be guaranteed for accuracy, completeness, or currency. Neither HousingPortal.ca and its employees, nor any other party identified in this guide/report, assumes any liability for the information provided. The views and opinions expressed by the analysts at HousingPortal.ca are their own and should not be considered as investment advice. It is recommended that you seek the advice of a licensed real estate professional before making any decisions regarding real estate investments.