Graph of the Strength of the Real Estate Market as of the end of March 2013
for the Fraser Valley Real Estate Board (FVREB)
Above graph was compiled by using figures published by the FVREB
All property types (incl. assignments and lots)
Active Listings: 9,503
Sales to Active Listings ratio: 11.9% or 8.4 MOI
New Listings: 2,736
Sales to New Listings ratio: 41.2%
How the Sales to Active Listings Ratio (SALR) affects prices
According to Cameron Muir, BCREA Chief Economist, this is a good rule of thumb:
Home prices are typically pulled downward when the SALR is below 10% (or more than 10 MOI) and pushed upward when above 25% or less than 4 MOI.
Home prices tend to exhibit little upward or downward pressure when the SALR is between 15% and 20%. (6.7 to 5 MOI)
At this level a relative balance exists between supply and demand. Consideration should be given to the direction of the SALR.
A quick check of the SALR over the previous several months can help you understand if the market conditions are holding steady, deteriorating or improving