Cost- Reading current market conditions accurately benefits from looking at two specific numbers together — months of inventory and the sales-to-new-listings ratio — rather than relying on a single headline figure.
- Conditions vary significantly by city and by property type within a city, so a citywide label can obscure meaningful differences relevant to your specific search.
- Both numbers are generally available through your realtor or public real estate board data, not something you need to estimate.
The two numbers that matter most
Our months of inventory guide covers the first: how long current listings would last at the recent sales pace. The second, the sales-to-new-listings ratio, measures what percentage of new listings are actually selling in a given period — a high ratio (roughly above 60%) generally favours sellers, while a low ratio (below 40%) generally favours buyers, with the range between considered more balanced.
Why they're more useful together than either alone
Months of inventory reflects the accumulated stock of listings, while the sales-to-new-listings ratio reflects the current pace of transactions — together they give a fuller picture than either alone, since inventory can be high but stable (a large, steady backlog) or high and rapidly growing (worsening conditions for sellers), and the ratio helps distinguish between those two very different situations.
Applying it to your specific search
Ask your realtor for both figures specific to your target neighbourhood and property type, not just a citywide average — conditions can differ meaningfully between, say, condos and detached homes in the same city, as covered in our various city market updates. A citywide "balanced market" label can hide a genuine buyer's market in one segment and a genuine seller's market in another.
- Canadian Real Estate Association (CREA) — accessed September 2026