The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity.
There were 4.5 months of inventory on a national basis at the end of October 2016--its lowest level in almost 7 years. The number of months of inventory had been trending lower since early 2015, reflecting increasingly tighter housing markets in Ontario – and, until recently, in B.C.
The number of months of inventory is at a record low in in the Greater Golden Horseshoe of Ontario, ranging between one and two months in Hamilton-Burlington, Oakville-Milton, Kitchener-Waterloo, Brantford, the Niagara Region, Barrie and nearby cottage country. It has slipped to below one month in Mississauga, the Durham Region, Orangeville, Cambridge and Guelph. It stands at about one month in Toronto.
According to Jason Mercer, the Toronto Real Estate Board's Director of Market Analysis, "Seller's market conditions continued to prevail as buyers of all home types experienced intense competition in the marketplace. Until we experience sustained relief in the supply of listings, the potential for strong annual rates of price growth will persist, especially in the low-rise market segments.”