Not many home sellers consider the supply or availability of substitutes to their own home, but I am going to explain why you should.

First, how do we calculate supply? It’s fairly simple, but you will need a REALTOR® to give you the stats. 

Here is the equation. # Homes for Sale at Month End divided by # Sold in the Month Prior.

So, for example let’s look at single family homes in Edmonton for the month of April 2022.

At the end of April there was 1893 homes listed for sale.

During March 2022 there was 1429 homes sold.

Therefore (and this is where we apply theory over reality) if no one else listed their home for sale there is 1.3 months of supply.

At Ambergate Realty Advisors we consider anything less than 4 months of supply is a sellers’ market, 4 to 6 months is a balanced market and anything over 6 months is considered a buyers’ market.

Why should you care?

1. It gives you a sense if the market supply is tightening or freeing up which will in the end dictate if your home will increase in or decrease in value in the short term.

2. It helps you understand if we are in a sellers, buyers or balanced market.

3. It gives you a unique insight not many home sellers or home buyers for that matter will be considering.

About the author:

You can read more about the author of this blog by clicking this link - Stuart Neal, Broker, REALTOR® & Team Lead.

Our FIXED FEE home selling program gives clients proven results & affordability. To learn more call our Broker Owner & Team Lead Stuart Neal at: 780-760-2014 or visit our program page www.FixedFeeRealty.ca

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