Looking at the statistics we see that we are still maintaining an increase of almost 6% in annual sales ending in July 2013 over the same time frame last year. During this time, inventory has dropped 9.6%. Prices continue to fall... 3.6% since last year and continue showing signs of firming up. Overall, prices are down a modest 11.8% from the highest prices ever recorded in 2008. This is a small loss in home prices compared to many other markets in Canada and the US. The attractiveness of our region continues to bring Buyers here from all over the world.
We are in the 5th year of a falling market. The increasing sales and dropping inventory indicate that we are near the end of this down cycle, at a market bottom and progressing towards a recovery.
Looking ahead to August we see a very dramatic rise in month-to-date sales compared to last year, overall sale across our region are up 39% and single family residential homes are up 60% compared to month-to-date sales in 2012. Is this signalling a more pronounced shift in the market? The market has been slowly and gradually recovering for about 18 months now and the word is getting out... prices for this area are very affordable, interest rates are low and the market is poised for a rebound. It's time to invest in real estate in the North Okanagan Valley.
The market over the next 12 to 18 months will continue to be characterized by a gradually increasing sales, followed by lower inventory. Prices will continue to fall very slightly, then firm up (bottom out) and then slowly start to rise. Timing will depend on how the world and national economies fare out over the coming months. No one can really predict when the market will shift but we are seeing signs of it every month.
Real estate markets are very localized and what happens in one market is not necessarily what is happening in other markets. The market factors here are unique as they are in every other region across the country.
If you have any questions about the market, please feel free to contact me at any time. You can click here to go to my stats page with graphs and detailed data.