research note<\/a> last month, prices are likely to follow that same path to stability. <\/p>\nThe writing is on the wall too. Sales activity in the Vancouver market returned to normal levels in November but new home listings dropped, leading REBGV\u2019s Smith to note that \u201cit\u2019ll be important to watch home listing levels over the next few months to see if supply can stay in line with home buyer demand.\u201d<\/p>\n
Conventional market wisdom dictates that when the sales-to-active listings ratio \u2014 a measure that compares sales to homes on the market in a given period \u2014 rises above 20 percent for a prolonged period, it leads to home price increases. <\/p>\n
That ratio across all property types sat at 23.2 percent in November, with condos at 29.3 percent and detached homes at 17.2 percent.<\/p>\n
So in other words, if sales are rising and listings are declining, prices will typically begin a march upwards as demand outpaces supply. At this point, that\u2019s looking like the most likely scenario for the Vancouver market heading into 2020.<\/p>\n
![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2019\/06\/vancouver-housing-market-1.jpg\")
<\/a><\/p>\n