Sandeep Pawar
Broker
Home / Sell / Buyers’ vs sellers’ market
Buyers’ market or sellers’ market: how your strategy changes
How to tell which market you are selling in, using the measures CREA and TRREB publish. Then how that changes your price, timing, preparation and negotiation.
The short answer: a sellers’ market has more buyers than homes; a buyers’ market has more homes than buyers. CREA treats a sales-to-new-listings ratio of roughly 45% to 65% as balanced. Its second test is months of inventory: under about 3.6 months favours sellers, over about 6.4 favours buyers. Your pricing, preparation and offer strategy should follow the market you are actually in.
How to measure the market
| Measure | What it shows | How CREA reads it |
|---|---|---|
| Sales-to-new-listings ratio | How quickly buyers absorb new supply each month. | Roughly 45% to 65% is generally consistent with a balanced market. The long-term national average is 54.7%. |
| Months of inventory | How long current listings would take to sell at the current pace. | Below about 3.6 months is a sellers’ market. Above about 6.4 months is a buyers’ market. |
| Days on market | How long homes take to sell. | Not a CREA threshold. Watch the trend for homes like yours. |
| Sale price versus list price | Whether buyers are paying above or below asking. | Not a CREA threshold. Useful alongside the two measures above. |
| Price index trend | Whether typical prices are rising or falling. | The MLS Home Price Index adjusts for the mix of homes sold. |
Where the market stood in September 2026
Nationally, CREA’s figures sat inside its balanced range in September 2026. The national MLS Home Price Index was down 3.4% from a year earlier, and the national average sale price was $666,538.
In the Greater Toronto Area, TRREB reported an average selling price of $1,006,409, down 5.1% year over year, and an MLS HPI composite down 4.7%. Dividing TRREB’s sales by its new listings gives about 31 sales for every 100 new listings that month. That is my own arithmetic, not a TRREB figure, and it points to buyers having more choice than sellers would like.
Figures change every month. For Brampton, Mississauga and Caledon, see the market report.
How your strategy changes by market
| Decision | Sellers’ market | Balanced market | Buyers’ market |
|---|---|---|---|
| Pricing | At or slightly under value can draw competing offers. | At market value, backed by recent comparables. | Sharply at value from day one. Overpricing costs more here than anywhere. |
| Offer approach | An offer date can make sense. | Usually offers any time. | Offers any time. Be ready to negotiate conditions. |
| Preparation | Clean and repaired is often enough. | Repairs, decluttering and good photos matter. | Your home must beat the competition. Consider a pre-listing inspection. |
| Conditions | Buyers may offer few or none. | Financing and inspection are common. | Expect conditions, and sometimes a sale-of-home condition. |
| Timing | Faster sales. Plan your next move early. | Normal timelines. | Allow more time. Sell before you buy, if you can. |
| Negotiation | Price, deposit and dates can tilt your way. | Give and take on every term. | Protect price by trading on dates, inclusions and small repairs. |
Which market is your home in right now?
What’s my home worth?Your segment matters more than the headline
National and GTA figures blend every type of home. Your result depends on homes like yours, nearby, at your price.
- Property type: detached, semi, townhouse and condo markets often move differently
- Price range: entry-level homes and higher-priced homes draw different buyer pools
- Neighbourhood: school areas, transit and new-build competition change demand street by street
- Special features: a separate-entrance basement or a large lot can widen your buyer pool
- Season: the number of buyers and competing listings can change through the year, so check the current month, not last year’s
Selling and buying in the same market
If you are moving within the GTA, the market affects both sides of your move. A softer market may lower your sale price, but it usually lowers the price of your next home too.
The real question is the gap between the two, and the order you do them in. Read upsizing: buying and selling at the same time or downsizing.
Before you choose your strategy
- Recent sales of homes like yours, within the last few months
- Active and expired listings nearby, with their prices and days on market
- Your realistic timeline, and your latest acceptable closing date
- Your next purchase, priced in the same market
- Your mortgage payout and penalty (see selling costs)
- A pricing plan built from a written CMA (see pricing your home)
Strategy mistakes are among the most expensive. See seller mistakes to avoid.
Questions sellers ask about the market
What is a buyers’ market?
A market where there are more homes for sale than buyers ready to purchase them. Homes take longer to sell, buyers negotiate harder, and conditions in offers are more common. CREA treats more than about 6.4 months of inventory as a buyers’ market.
What is a sellers’ market?
A market where buyers outnumber available homes. Homes sell faster, competing offers are more common and buyers often waive conditions. CREA treats less than about 3.6 months of inventory as a sellers’ market.
What is the sales-to-new-listings ratio?
Sales in a month divided by new listings in the same month. A higher ratio means buyers are absorbing new supply quickly. CREA describes a ratio roughly between 45% and 65% as generally consistent with a balanced market.
What are months of inventory?
The number of months it would take to sell every home currently listed at the current pace of sales. CREA reported 4.9 months nationally at the end of September 2026, in line with the long-term average.
Is it a good time to sell in the GTA?
It depends on your property type, your neighbourhood and what you are buying next. If you are buying in the same market, a softer market lowers both your sale price and your purchase price. I look at your segment, not just the headline numbers.
Should I wait for the market to improve before selling?
Nobody can reliably time the market. Waiting has costs too: carrying costs, mortgage renewal risk and life plans on hold. Compare a realistic price today with the cost of waiting, then decide.
Can one city have different markets at the same time?
Yes. Detached homes, townhouses and condos often behave differently, and so do price ranges. A well-priced family home can sell quickly while condo inventory builds in the same city.
Sources
- CREA: Canadian home sales pull back in September (released 16 October 2026: sales-to-new-listings ratio, months of inventory, thresholds, MLS HPI, average price)
- TRREB: Market Watch, September 2026 (GTA sales, new listings, average price, MLS HPI composite)
Find out which market your home is in
Get an instant estimate, then I will show you the sales, listings and pace for homes like yours, and the strategy I would use.