Market Type
Explore market types in Canadian real estate: how to distinguish buyer’s, seller’s, and balanced markets and what each means for your strategy.
May 30, 2025
What is a Market Type?
Market type refers to the classification of a real estate market based on supply, demand, and pricing trends, typically categorized as buyer’s, seller’s, or balanced.
Why Do Market Types Matter in Real Estate?
In Canadian real estate, knowing the market type helps buyers and sellers adjust expectations, strategies, and pricing.
Market types include:
- Buyer’s Market: More supply than demand; prices often soften.
- Seller’s Market: More demand than supply; bidding wars likely.
- Balanced Market: Supply and demand are relatively even.
Market type can vary by region and property type. Tracking conditions helps buyers negotiate and helps sellers list competitively.
Understanding market types empowers participants to time their transactions and make strategic real estate decisions.
Example of Market Types in Action
With new inventory surging and sales slowing, analysts declared a shift from a seller’s market to a balanced market in several Ontario cities.
Key Takeaways
- Reflects balance between supply and demand.
- Buyer’s market = more listings, lower prices.
- Seller’s market = fewer listings, rising prices.
- Influences pricing and offer strategies.
- Varies by location and time of year.
Related Terms
- Buyers' Market
- Sellers' Market
- Market Value
- Sales-To-New-Listings Ratio (SNLR)
- Housing Supply
