We're off to an early start to the spring market. Sales are up, inventory is dropping and prices are on the rise.
January 2014 sales of single family residential homes were almost double over January 2013, 44 sales in January 2014 compared to 22 in January 2013. This brought total sales for the 12 months ending January 2014 to 805, up 7.6% from the 12 months ending January 2013 and the highest volume of sales in the last 4 years.
The average monthly inventory of single family homes dropped to 625 for the last 12 months ending in January 2014, the lowest average inventory we have seen in the last 7 years. Inventory has not been this low since 2007 which is before the start of the recession that hit in 2008.
Average median prices continue to rise. At $342,690, average median prices for the last 12 months ending in January 2014 rose 4.9% over average median prices for the 12 months ending in January 2013.
The rate at which our inventory is being absorbed by sales rose to an average of 10.62% over the 12 month period ending January 2014, the highest in the last 6 years. At the end of January 2014, there was 11 months of inventory available on the market.
From these numbers, it looks like we can expect the market to continue to rise as we enter the busy spring market. February sales month-to-date continue to show improvement over February 2013 so we are experiencing an early start to the spring 2014 real estate market in the North Okanagan.
The market over the next 12 to 18 months will be characterized by continued increasing sales and lower inventory moving strongly towards a market that will favour Sellers with more competition from Buyers and higher prices. Prices will continue to rise as consumer confidence gathers momentum and bringing with it more Buyers.
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 full detailed data.