ARE WE THERE YET?
Have real estate prices in Kelowna finally hit ‘rock bottom’?
It’s a question a lot of agents are asked with the most accurate answer being found in the reported statistics. In the recent months we have seen a marked improvement in our local real estate market with the number of sales for the period May through July 2013 up 13.4%. A total of 1398 properties were sold in the Central Okanagan from May 1st to July 31st 2013 versus 1232 properties exchanging hands for the same time period in 2012! For the third consecutive month we have seen a decrease in inventory, the average price of a home edge forward, and the Okanagan Mainline Real Estate Board posting the most MLS® residential sales since 2009! Exciting News!
Does this mean we are heading for a healthier, more balanced market? Could prices start to rise after having remained flat for years? Entering a market where Sellers aren’t at the mercy of aggressive buyers? You be the judge. The principal of supply and demand is a basic one. If demand remains unchanged or increases, and supply decreases, a shortage occurs leading to a higher equilibrium price.
With stronger economic conditions expected in both BC and Alberta during the second half of the year and through 2014, and the US economy, the largest BC export market, forecast to turn the corner in late 2013 with growth accelerating above 3 percent in 2014, all indicators point to a continued economic recovery which is a major force in driving the real estate market.
The definition of recovery is the restoration or return to any former and better state or condition.
I think you would agree with me that in light of the recent statistics it would appear that in terms of our local real estate market….we are definitely in recovery mode.