September Absorption Rates indicating good things to come
The absorption rate is the percentage of the total monthly residential inventory that sold in any particular month. This is the most important statistic to monitor when trying to figure out where the market is going. The reason is that it is a direct indication of supply and demand, which is what drives the prices up or down. When we look at the absorption rates for all 3 regions; the North Okanagan, the Central Okanagan and the Shuswap and we compare this past September to September of 2012 the absorption rates have risen 28.9%, 93% and 202% respectively. (that is not a typo!) This improvement has been building all year. When we look at the entire province of British Columbia sales are up 43% over sales in September of 2012. This positive pressure will further push up Okanagan home prices in the spring.
Did You Know...
In BC there is a Property Transfer Tax for any one who buys a home with a few exceptions. It's no small fee either. It's 1% of the first $200,000 plus 2% of the balance of the sale price. That means on a $400,000 purchase the buyer would pay $6000 of Property Transfer Tax. When you are scraping together every penny to buy your new dream home that is a lot of money. However, there are some exemptions. First, it has to be your first purchase anytime and anywhere in the world. Next it has to be your principle residence, in other words you have to be buying it to live in. Then you have to have lived in the province of British Columbia for at least a year. You have to be a Canadian citizen. You have to live in the house for at least a year. It has to be priced below $425,000. And lastly, you have to move in within 92 days of the completion date . If you satisfy all these requirements then you are likely exempt from paying the BC Property Transfer Tax. Ask your Century 21 Realtor ....taking care of the details for you.