Many people mistakenly think that the most important statistic to reveal what is happening in the Okanagan Shuswap Market is the sales activity or prices. This is incorrect. The absorption is the best indicator of the market. In our statistics we watch the average absorption of all single family residential housing. This has been shown over the years to give us the most accurate view of the market. The absorption is an indicator of supply and demand which is actually what really drives the market. For instance, as you can see by our monthly stats, the residential absorption in the Central Okanagan in April was 25.64 %. That means that 25.64% of all the houses on the market in April sold in April. The Central Okanagan has not seen absorption that high since August of 2007. A balanced market is around 11-15% absorption. Above that is a seller's market. What this means is that the Central Okanagan is approaching a boom Real Estate Market. The absorption in the North Okanagan was 16.86% and the Shuswap was 11.36%. The North Okanagan is in a seller's market and the Shuswap is in a balanced market. Throughout the Okanagan Mainline Real Estate board year to date sales are up 13% compared to the same period in 2014.
Okanagan Shuswap Market is Breaking Into a Seller's Market
- July 15, 2015