Canadian real estate buyers are taking a break after driving most of the country’s markets to new highs. Canadian Real Estate Association (CREA) numbers show the sales to listings ratio declined across most of Canada in January. There were only three exceptions, all located east of Toronto.
Sales To New Listings Ratio (SNLR)
The sales to new listings ratio (SNLR) is a quick way to view real estate market demand, and is used by CREA. The indicator measures the ratio of home sales, to the number of new listings on the MLS. The thinking behind it is, by measuring same month absorption – we get a feeling for how hot or cold a market is. It’s how the industry can tell if a market is “balanced” or not.
Reading it is straightforward. If the…