Seller's market and buyer's market
In a seller's market, more buyers compete for fewer homes: inventory is low, homes sell quickly and prices rise. In a buyer's market the reverse holds: inventory is high, sales are slow and prices are flat or falling.
Indicators to watch
Track these monthly for the sub-markets you work in most:
- Months of inventory: active listings divided by monthly sales. As a common rule of thumb, under about three months favours sellers, over about six favours buyers, and in between is balanced.
- Sale-to-list price ratio: homes selling above list point to a seller's market; below list points to a buyer's market.
- Days on market: rising numbers suggest softer demand, falling numbers suggest more competition.
- Absorption rate: the share of listed homes that sell each month.
Applying a time adjustment
If a comparable sold four months ago and the market has risen an estimated 2% since, its adjusted price is 102% of the actual sale price. In a falling market you adjust downward.
The right percentage depends on how fast your specific sub-market is moving, so base it on recent local data rather than a regional headline number, and show the client how you arrived at it.
General information for BC real estate agents, published 2026-10-27. It is not legal or tax advice, and rules and forms change, so confirm details with your brokerage, the BC Financial Services Authority or a lawyer.