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Housing Inventory

Explore housing inventory in Canadian real estate — why it matters, how it's measured, and how it affects market conditions and strategy.

Housing Inventory

June 09, 2025


What is Housing Inventory?

Housing inventory refers to the total number of homes available for sale in a specific real estate market at a given time.

Why Housing Inventory Matters in Real Estate

In Canadian real estate, housing inventory is a critical factor in determining market conditions, such as whether it's a buyers’ or sellers’ market.



Low inventory typically leads to:
  • Increased competition among buyers
  • Higher sale prices and bidding wars
  • Reduced time on market



High inventory, on the other hand, gives buyers more options and negotiating power. Inventory levels are tracked by real estate boards and influence pricing, development, and marketing strategies.



Understanding housing inventory trends helps buyers, sellers, and investors make informed decisions about timing and pricing.

Example of Housing Inventory in Action

With only a two-month supply of homes in the region, analysts flagged a record low in housing inventory, pushing average prices upward.

Key Takeaways

  • Reflects number of homes actively for sale
  • Helps determine market competitiveness
  • Low inventory drives prices up
  • Influences seller strategy and buyer urgency
  • Used in industry reporting and analysis

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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