Are we still in a seller’s market? Try not to buy into all the doom and gloom in the national headlines because real estate is local. What you really need to know what is happening here in the local St. John’s real estate market.
What is Inventory Rate?
In order to know the difference between a buyers, sellers and balanced market and fully understand what is happening in our local market, you need to know what it means when you hear the term inventory rate.
So here it is plain and simple. Inventory is the houses that are currently listed on the market and the inventory rate is measured as months of inventory. So, at the current pace that homes are selling, if no new homes come onto the market how many months of inventory do we have left before they would all be sold.
What is the difference in a buyers, sellers and balanced market?
- A Sellers Market is when there is less than 4 months of inventory.
- A Balanced Market is when there is 4-6 months of inventory.
- And a Buyers Market is when there is more than 6 months of inventory.
What's happening in the St. John's Real Estate Market?
So, what is on the go in St. John’s. Right now* there is 5 months of inventory on the market so technically we are in a balanced market. However, because in Newfoundland we were previously in a buyers market for so long it still kind of feels like we are still in a Seller’s market, even though it is actually balanced.
A balanced market occurs during the transition between markets and rarely lasts for a long time so it is reasonable to predict that we are headed towards a buyers market.
So, based on the data I would say yes it is still a good time to sell. However, it’s important to set your expectation that since we are in a balanced market and things are moving a little slower than they were a year ago, it may take a couple of weeks or longer to sell and this is perfectly normal. And as we continue to shift towards a buyers market it will become increasingly important to work with a professional to properly price and market your home.
Now that you know more about the shift happening in the St. John’s real estate market I hope you feel more confident to make the decision to buy or sell.
*Please note: this blog was written in September 2022 and was based on the data available at the time. If you would like an updated market report, please reach out, I’d be happy to run the numbers again for you.