What housing inventory numbers can tell us, right now

What housing inventory numbers can tell us

By Romana King on October 17, 2016
Estimated reading time: 2 minutes

The months of inventory ratio shows most of the country is in a seller's market, as of September 2016

The number of months of inventory (MOI) is an important measure for determining the supply and demand equilibrium in the housing market. This ratio represents the number of months (or days) it would take to completely sell the homes that are currently listed for sale, based on the area’s current rate of sales activity. According to the Canadian Real Estate Association (CREA), there were 4.8 months (144 days) of inventory on a national basis at the end of August 2016. In CREA’s national statistic package release it’s noted that the MOI has been trending lower since early 2015, “reflecting increasingly tighter housing markets.”

How to calculate MOI (months of inventory)

Active listings for a given period / number of sales for a given period = # MOI

Type of market

It’s a seller’s market if there are four months (approximately 120 days) of inventory or less. It’s a balanced market if there are four to six months (approximately 120 to 180 days) of inventory. It’s a buyer’s market if there are six months (approximately 180 days) or more of inventory.

What type of market are we in?

Housing in Canada is regional and there can even be differences from province to province, city to city and even neighbourhood to neighbourhood. At present, most of the major urban centres in Canada are either in a seller’s market or a balanced market, with the exception of the Atlantic provinces. The East Coast housing markets remain in a buyer’s territory. months of inventory sept 2016

Sources: Toronto Real Estate Board, Saskatoon Regional Association of Realtors, Association of Regina Realtors, Real Estate Board of Greater Vancouver, Nova Scotia Association of Realtors, Canadian Real Estate Association

Province	City	Days of inventory	MOI (months of inventory)	Type of market
Nova Scotia**		297.9	9.9	Buyer

Newfoundland**		262.2	8.7	Buyer

Quebec	Montreal Island*	46.7	1.6	Seller
	Quebec City*	51.2	1.7	Seller

Ontario	Hamilton	36.8	1.2	Seller
	Oshawa	36.8	1.2	Seller
	Pickering	38.5	1.3	Seller
	Burlington	38.8	1.3	Seller
	Brampton	40.3	1.4	Seller
	City of Toronto	44.9	1.5	Seller
	Central Toronto	46.1	1.6	Seller
	Markham	46.5	1.6	Seller

Manitoba	Winnipeg	77 days	2.6	Seller

Saskatchewan	Saskatoon	77.1	2.57	Seller
	Regina City	144.5	4.8	Balanced

Alberta	Edmonton	61.4	2.1	Seller
	Calgary	118.4	4	Balanced

British Columbia	Metro Vancouver	63.9	2.1	Seller
	Victoria	79.2	2.6	Seller