Listings are back to normal after spiking this spring.
The seasonally adjusted sales to new listing ratio climbed to 51% from the decrease in new listings. This has not been enough to reverse the current trend of falling prices as inventory remains high, sales remain terrible and sentiment has turned.
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I think it's an important point, that this is merely a leading edge indicator (sales to new listings ratio). The absorption rate, or current high levels of inventory, is a 'momentum' factor, and I would not consider the market to be balanced until sales to new listings ratio is firmly above 50% AND the absorption rate falls back under 4 months of inventory.
Anecdotally, I have heard two stories lately. That the real estate market also has high inventory levels in places like Kelowna. And that there are a four people I know that are in the situation of having two houses (which they can afford), but are not wanting to be landlords. If this is as common as I have heard from my four anecdotes, there is going to be downward pressure on prices throughout 2011.
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