I'm not sure that the saying "A picture is worth a thousand words" was intended to be applied to charts or graphs - or how it relates to the concept of real estate blogging - but here goes.
In looking at the numbers recently doing the April Statistics - with the wise words of the world according to Bill still fresh in my ears.. I decided to take some time and look back to see where we have come from - what the North Okanagan Real Estate Market has gone through and where we are.
The first information I would like to share with you is the comparison of New Listings versus Sales on a monthly basis - from April 2007 through April 2009. In looking at this chart - you can clearly see how dramatically the market changed int 2008.
Inventory Levels were naturally impacted by the fact that many more new listings were added month by month, while sales declined. Some decline in inventory is seasonal - not many people decide to list their house in the latter part of October, November or December.
And finally, Absorption Rate - this is the ONE number that can give you the best overall picture of demand. The absorption rate is determined by dividing the available inventory in a month by the number of sales in that month - thus illustrating the demand depicted here as the number of months of inventory on hand at the current sales rate. You can see that this winter - in the North Okanagan we had over 2 years of inventory on hand in the residential market. Now we have dropped down to just over 10 months - which is still on the high side but the trend is headed in the right direction.
You can see how these charts play together. Look at the Inventory level. It shows that inventory is rising- however - you can moderate that by looking at the new listings versus sales - and see that the number of new listings has stabilized somewhat for the last few months - and the number of listings sold has increased steadily each month so far in 2009. This is what has lead to the decline in the absorption rate.
So.. How has all of this impacted price? I will post average and median sale prices later this week