The Sales-to-New-Listings Ratio is one of the most useful — and underused — tools for understanding Canadian real estate market conditions. Here is how to read and use it.
How SNLR is calculated
$$\text{SNLR} = \frac{\text{Number of Sales}}{\text{Number of New Listings}} \times 100%$$
Example: In a given month, a city sees 2,500 new listings and 1,500 sales.
$$\text{SNLR} = \frac{1{,}500}{2{,}500} \times 100% = 60%$$
This means 60% of new listings were absorbed by buyers — indicating a balanced-to-seller market.
Market condition thresholds
| SNLR Range | Market Condition | Price Trend | Negotiating Power |
|---|---|---|---|
| Below 40% | Buyer’s market | Prices tend to decline | Buyers have strong leverage |
| 40%–60% | Balanced market | Prices stable | Relatively equal |
| Above 60% | Seller’s market | Prices tend to rise | Sellers have leverage |
| Above 80% | Strong seller’s market | Rapid price appreciation | Sellers in full control — bidding wars common |
These thresholds are guidelines used by CREA and most real estate analysts — they are not rigid rules.
Current SNLR by Canadian city (early 2026)
| City | SNLR | Market Condition | Price Trend |
|---|---|---|---|
| Toronto (GTA) | 48%–55% | Balanced | Stable to modest growth |
| Vancouver (GVA) | 45%–52% | Balanced | Stable |
| Calgary | 62%–70% | Seller’s market | Rising |
| Ottawa | 52%–58% | Balanced | Stable to modest growth |
| Montreal | 55%–62% | Balanced to seller’s | Modest growth |
| Edmonton | 55%–63% | Balanced to seller’s | Modest growth |
| Winnipeg | 50%–58% | Balanced | Stable |
| Halifax | 58%–65% | Balanced to seller’s | Modest growth |
| Hamilton-Burlington | 45%–55% | Balanced | Stable |
| Kitchener-Waterloo | 48%–56% | Balanced | Stable |
SNLR varies month-to-month and by property type. Check CREA or your local board for the latest data.
How SNLR changes over time
National SNLR trends (2019–2026)
| Period | National SNLR | Market | What Was Happening |
|---|---|---|---|
| 2019 | 55%–60% | Balanced | Pre-pandemic stability |
| Early 2020 | 35%–40% | Buyer’s (pandemic shock) | COVID lockdowns, market freeze |
| Late 2020 | 70%–80% | Strong seller’s | Pent-up demand, low rates, FOMO |
| 2021 | 75%–85% | Very strong seller’s | Record prices, bidding wars, ultra-low rates |
| Early 2022 | 60%–70% | Seller’s | Still hot but cooling as rates began rising |
| Late 2022 | 40%–50% | Balanced to buyer’s | Rate hikes slowed demand significantly |
| 2023 | 45%–55% | Balanced | Market stabilizing, sluggish sales, moderate listings |
| 2024 | 50%–58% | Balanced | Rate cuts beginning, gradual recovery |
| 2025 | 50%–60% | Balanced | Market normalizing post-rate cycle |
| Early 2026 | 50%–58% | Balanced | Stable outlook |
How to use SNLR when buying
| SNLR Reading | Buyer Strategy |
|---|---|
| Below 40% (buyer’s market) | Take your time, negotiate hard, include conditions, offer below asking |
| 40%–50% (soft balanced) | Moderate negotiation room, conditions generally accepted |
| 50%–60% (balanced) | Standard approach — competitive offers with reasonable conditions |
| 60%–70% (seller’s market) | Be prepared to compete, clean offers, strong financing |
| Above 70% (hot seller’s) | Offer quickly, consider reducing/removing conditions, expect bidding wars |
How to use SNLR when selling
| SNLR Reading | Seller Strategy |
|---|---|
| Below 40% (buyer’s market) | Price competitively, invest in staging and marketing, be patient with DOM |
| 40%–50% (soft balanced) | Realistic pricing needed, prepare for negotiation |
| 50%–60% (balanced) | Price at market value, standard marketing approach |
| 60%–70% (seller’s market) | Can price at or slightly above market — expect solid offers |
| Above 70% (hot seller’s) | Underprice to generate multiple offers (offer date strategy), expect above-asking |
SNLR by property type
SNLR can vary dramatically within the same city depending on property type:
| Property Type | Typical SNLR Pattern | Why |
|---|---|---|
| Starter homes (under $500K) | Higher SNLR (seller’s) | High demand from first-time buyers |
| Family homes ($500K–$1M) | At or above average | Broad buyer pool |
| Luxury ($2M+) | Lower SNLR (buyer’s) | Small buyer pool, niche market |
| Condos | Often lower than detached | Higher inventory, pickier buyers |
| Detached homes | Often higher than condos | Less inventory, broader demand |
| New construction | Varies by phase and market | Builder pricing and absorption rate are different metrics |
SNLR vs other market indicators
| Indicator | What It Measures | Speed of Signal |
|---|---|---|
| SNLR | New demand vs new supply (flow) | Fast — responds quickly to market shifts |
| Months of inventory | How long to sell all active listings (stock) | Medium — lags as inventory builds or depletes |
| Average sale price | What buyers are paying | Slow — prices lag market conditions by weeks/months |
| DOM (Days on Market) | How long listings take to sell | Medium — trends visible over 1–2 months |
| Price-to-list ratio | Sold price vs asking price | Fast — shows negotiating dynamics in real time |
| Housing starts | New construction activity | Very slow — forward-looking supply indicator |
Using multiple indicators together
For the most complete picture, use SNLR alongside:
- SNLR — is demand absorbing supply?
- Months of inventory — how much inventory is accumulated?
- DOM — how long are properties taking to sell?
- Price-to-list ratio — are homes selling above or below asking?
- Price trends — what direction are prices moving?
When all five indicators align (e.g., high SNLR + low inventory + low DOM + above-asking sales + rising prices), the market signal is strong.
Limitations of SNLR
| Limitation | Why It Matters |
|---|---|
| Aggregate data | City-level SNLR masks neighbourhood-level differences |
| Property type blending | Combining condos and detached can be misleading |
| Seasonal variation | Low listings in December inflate SNLR artificially |
| New listings ≠ all inventory | SNLR ignores existing unsold inventory from previous months |
| Does not capture price | A market can have high SNLR with declining prices (if sellers are reducing) |
| Relisting distortion | Properties that are delisted and relisted inflate the new listings count |
Key takeaways
- SNLR below 40% = buyer’s market; 40%–60% = balanced; above 60% = seller’s market
- SNLR responds faster to market shifts than prices or months of inventory
- Always look at SNLR for your specific property type and neighbourhood — not just the city average
- Combine SNLR with months of inventory, DOM, and price-to-list ratio for a complete market picture
- CREA publishes monthly SNLR data — check it regularly if you are actively buying or selling