By Managing Broker/Owner Bill Hubbard | Century 21 Assurance & Executives Realty Ltd.
Once again the most important characteristic in predicting the Real Estate market is continually overlooked by some of the most prominent authorities. That important characteristic is that the Real Estate market unlike the stock market is incredibly local. It seems when there is a major event in the world it affects the stock markets in the same way all over the world. The stock market is something that is globally controlled by global factors. The Real Estate Market, although it is not immune to global factors is much more controlled by local factors.
There are countless articles that describe how BC Real Estate is in correction and continuing to drop this year. There are also numerous articles that say this year is going to be a year of recovery and the markets are going rise again. How could there be such diverse opinions? The answer is that it depends on which market you look at. Vancouver has just come off a 4 year rise in prices and therefore they have entered a period of rebound and correction. The size of the Vancouver market is what skews our BC stats. Prince George and BC North on the other hand continue to lead the province because of a recovering forest industry and increased oil and gas exploration. Sparwood has just signed 10 year deals with Teck Coal so their market is picking up as well.
The Okanagan shuswap is coming off a period of time where the market has been correcting for the last few years so we are now recovering and will continue to recover for the next few years. As you see by our stats chart the Okanagan, Shuswap Real Estate Markets are in recovery mode. Sales are picking up, inventory is creeping down and absorption is rising. The rates of this improvement continues to be very slow and gradual. That means that our recovery will continue to be slow and gradual. But once again that is the best market to be in; a slow and gradual recovery.