Vernon/North Okanagan Market Update - October, 2012
October continues the trend started in September with real estate sales that were encouraging in our area for this time of year! Sales were higher than October 2011 and surprisingly also higher than last month! Let’s hope these sales figures will carry over into the next months as we go into winter!
The figures for Residential Homes sales were encouraging…….
Only 96 total new Residential Home listings came on the market in October 2012, down from October 2011, and also down from last month. The current inventory for Residential Homes stands at 631, this lower number is good for sellers but it could also be seasonal as people take their homes off the market for the winter months.
In October 2012 there were a total of 75 Residential Homes sold, which is higher than last month! Also, a lot higher that October 2011! Usually expectations are that October sales will be less than September’s due to a seasonal decline. Interestingly, though, the average “days to sell” was at 128 for October 2012. This number is marginally up from last year and also up from last month. The average price paid for a Residential Home in October 2012 was $342,338, the median price was at $337,500.
Sellers: The absorption rate for Residential Homes is at 8.4 months which is calculated by dividing the number of homes in the current inventory by the number of homes sold this month. In plain terms, this number represents the number of months it will take to sell the current inventory at this month’s sales rates, (a little over 8 months). This number is down from last month and considerably lower than October 2011. It appears that from these statistics, it is becoming a weaker buyers market in the North Okanagan. It won’t be a seller’s market until the absorption rate dips below 6 months to sell the current inventory. Call me and we can go over the absorption rate for your neighborhood.
Buyers: It has been a buyer’s market for so long here in the North Okanagan that it’s easy to become complacent and miss a good buy now that things are starting to change. With less inventory available, home prices may become more stable and although homes are still priced aggressively there may be less room for negotiation.
If you are reading this and wondering what your home’s value is at this present time then give me a call 250-550-2125, with a few details from you over the phone, I can calculate what your present home’s approximate market value is. I provide this service free of charge to anyone in our area.
Stay tuned to my Blog, where I will keep you updated on the North Okanagan real estate market plus there is always lots of home selling and buying information for you to enjoy!