Be a step ahead with real estate terms

The more you know, the better! That’s why I’ve pulled together some real estate terms. You’ll be one step ahead the next time you have a run-in with a real estate market update.

Five most common real estate terms.

1. SALES
   The terms sales, dollar volume, average sale prices and median sale prices are based on firm transactions entered in TRREB’s Multiple Listing System (MLS®) between the first and last day of the month being reported. Sales account for the purchase or sale itself and are often confused with price. For example, there were 65,982 home sales reported through TRREB’s MLS® System in 2023 – a 12.1% dip

   compared to 2022.

2. New Listings
   A simple one. This is defined as brand new listings entered into TRREB’s (MLS®) System between the first and last day of the month. Consider this to be fresh, spanking new inventory hitting the market that month. In December 2023, we had less new “stock” hitting the market than we did last year. This means buyers have less to select from, making the competition more fierce.

3. Active Listings
   Active listings at the end of the last day of the month are the number of properties that were not reported as sold. When active listings are down month-over-month, it means the market is moving faster than last year, at the same time. In fact, active listings are down (5.7)% versus last year, meaning more velocity chewing through property listings.

4. Average % to List
   The average % to list is the ratio of the average selling price to the average listing price for firm transactions entered in TRREB's MLS® System. It's very common to see properties sell for more than their listed price. You may often see realtors report that their listing sold for 115% of the asking price (meaning, they got 15% more than the price marketing on TRREB's MLS® System). The listing price usually has nothing to do with value.

5. Average DOM
   This acronym is average number of days on the market for firm transactions entered in TRREB’s MLS® System between the first and last day of the month. Currently, the average days on the market is 21 days for homes and condo sales combined in the GTA. In the downtown core, inventory moves much faster and may sell between 7-10 days.

More real estate terms