IS it a great time to SELL your Home in the Okanagan….YES!
If the Spring statistics are any indication of the coming summer season…. it is going to be a HOT one in real estate! Pent up demand has resulted in an increase in sales the likes of which we have not seen in Kelowna since 2008 when real estate prices and sales were at their peak. April 2014 saw an incredible 26% increase in sales over April 2013 with May 2014 seeing a jump of 24% in sales over May 2013.
With a declining inventory, our local market has made the move from a ‘Buyers’ market in to a ‘Balanced’ market. It is significant to note that the residential absorption rate (the percentage of homes sold compared to the number of homes listed over a certain period of time in a specific area) in the Central Okanagan topped the 20% mark in April and a remarkable 22% in May! We haven't seen residential absorption this high since October of 2007. A clear indication that we are in full recovery mode.
Properties are also selling faster than in the past and with an increased demand from buyers, prices are starting to rise. Okanagan agents are finding themselves in ‘competing bid’ situations for the first time in many years and homes that are priced right for the current market are selling very close to, or just beyond their asking price in a very short period of time.
A few variables appear to be driving this surge in recovery. The recent ‘Canadian winter’ has initiated a substantial increase in Buyers from outside BC and record low interest rates are creating a push from first time buyers which allows current home owners the opportunity to ‘move up’.
Although the market is more favourable for Sellers than we have seen in past years, the competition for buyers is still a challenge. Correct pricing remains critical, and being realistic about the market value of your home, setting a competitive list price right from the get go, and being willing to negotiate is most conducive to a successful sale. The knowledge and experience your Realtor® offers is invaluable…use it accordingly!