Understanding Real Estate Market Terminology
Every month, news publications, media outlets and realtors report out market statistics that are produced by the Toronto Real Estate Board (TREB). You’ll see real estate market data presented in the form of articles, infographics, Instastory feeds and more… But, what does the breakdown even mean?
The 5 Most Common Real Estate Market Terms
The more you know, the better! That’s why we’re sharing the five most common terms used by TREB. This means, you’ll be one step ahead the next time you have a run-in with Toronto’s monthly real estate market statistics!
1. Sales
The terms sales, dollar volume, average sale prices and median sale prices are based on firm transactions entered into the TREB MLS system between the first and last day of the month being reported. Sales account for the purchase or sale itself and are often confused with price. To note, sales transactions are +10.4% versus the same time last year (June 2019).
2. New Listings
A simple one! This is defined as brand new listings entered into the TREB MLS system between the first and last day of the month. Consider this to be fresh, spanking new inventory hitting the market that month. In June, we had less new “stock” hitting the market than we did last year. This means buyers have less to select from – making the competition more fierce!
3. Active Listings
Active listings at the end of the last day of the month are the number of properties that have not been reported as sold. When active listings are down month-over-month, it means the market is moving faster than last year, at the same time. In fact, active listings are down (5.7)% versus last year, meaning more velocity chewing through property listings.
4. Average % to List
The average % to list is the ratio of the average selling price to the average listing price for firm transactions entered into the TREB MLS system. It is very common to see properties sell for more than their listed price. You will often see realtors report that their listing sold for 115% of the asking price (meaning, they got 15% more than the price marketing on MLS as an example). The listing price usually has nothing to do with value – ask us why!
5. Average DOM
This acronym means, the average number of days on the market for firm transactions entered into the TREB MLS system between the first and last day of the month. Currently, the average days on the market is 21 days for homes and condo sales combined in the GTA. In the downtown core, inventory moves much faster and sells between 7-10 Days!
Get More on Real Estate Market Trends
Looking for even more on the Toronto real estate market? Download our guide on 104 Real Estate Terms for every definition you need to know about real estate.
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This article is written by Kori Marin, Managing Partner and Broker at Fox Marin Associates. With a passion for Scandinavian design and all-things-Toronto, Kori brings her own brand of charismatic energy, creative integrity, and expertise to her work.
