Price bump in 2013

There are some statistics that are more relevant than others when trying to predict the future of the Real Estate market in any market place. There is no statistic that is more important than the absorption. The absorption is the percentage of the total inventory of homes that sell on a monthly basis. In lookin at 30 years of statistics there is no incidence of absorption rising for 6 months or longer that was not followed by a rise in prices. The opposite is also true. When the absorption is dropping for 6 months or more prices will come down. The reason that the absorption is so important is that it is the statistic that portrays what is happening to supplly and demand. Most people know that changes in the Real estate Market is a result of changes in supply and demand. As you can see by our monthly stats Central and North Okanagan and the Shuswap all show rises in absorption compared to last month and the same month last year. In fact we have seen a slow gradual consistent rise in absorption for all of 2012.  Even though many still have a pessimistic view of our local Real Estate market that statistics tell us you will see a slight rise in prices in 2013. Just remember that you heard it here first.

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Bill Hubbard

Bill Hubbard

CENTURY 21 Executives Realty Ltd.
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