Vernon/North Okanagan Market Update - December, 2012

What Happened in Home Sales in the North Okanagan, British Columbia in December 2012?

                                                                                                           

December sales declined somewhat but accounting for a typical seasonal slowdown, sales remained steady throughout the month to the end of 2012!  Residential sales were lower than December 2011 and somewhat the same as December 2010. Overall though, 2012 sales from Jan.- Dec. were up 9% for the North Okanagan real estate zone.Let’s hope these sales figures will carry over into this new year!

The figures for Residential Homes sales were ….
Only 33 new Residential Home listings came on the market in December 2012, down by 20 from December 2011, and also down from last month.  The current inventory for Residential Homes stands at 520, this lower number is good for sellers but it could also be seasonal as people take their homes off the market for the winter months. 

In December 2012 there were a total of 28 Residential Homes sold, which is lower than last month. Also, lower than December 2011 by 7. Usually expectations are that December sales will be less than previous months due to a seasonal decline. Interestingly, though, the average “days to sell” was at 136 for December 2012. This number is marginally down from the same time last year where it took on average 145 days to sell a Residential home. The average price paid for a Residential Home in December 2012 was $341,439, the median price was at $308,750.

Well what does all this mean? The market is flat but there is activity, in fact the activity has increased locally, homes are selling, so that's good news! Hopefully with an increase in activity the prices will slowly creep up. But it's a great time to buy as borrowing is still very inexpensive, mortgage rates are staying low. While many markets in the province were sluggish, OMREB (Okanagan Mainline Real Estate Board) saw strong gains most of the year and did not see declines until the last couple of months.

Sellers:  The absorption rate for Residential Homes is at 18.6 months or 1 and a half years which is calculated by dividing the number of homes in the current inventory by the number of homes sold this month. In plain terms, this number represents the number of months it will take to sell the current inventory at this month’s sales rates, (a little over 1 and a half years). This number is higher than December 2011 when the absorption rate sat at 15 months. It appears that from these statistics, it is still a buyers market in the North Okanagan. It won’t be a seller’s market until the absorption rate dips below 6 months to sell the current inventory. Call me and we can go over the absorption rate for your neighborhood.

Buyers:  It has been a buyer’s market for so long here in the North Okanagan that it’s easy to become complacent and miss a good buy by remaining on the fence and waiting to see where prices will go. Because of the increased activity however, prices are remaining the same and sellers can now relax knowing that the price fall has probably bottomed out. Pricing is as important as ever when potential buyers taking a wait-and-see approach.  We could see more new listings when those sellers currently sitting on the fence see that inventory is moving as the market continues to improve going forward.

If you  are reading this and wondering what your home’s value is at this present time then give me a call 250-550-2125, with a few details from you over the phone, I can calculate what your present home’s approximate market value is. I provide this service free of charge to anyone in our area.

Stay tuned to my Blog, where I will keep you updated on the North Okanagan real estate market plus there is always lots of information for you to enjoy!

warm regards,

 

 

 

 

 

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The Don Miller Group Team

The Don Miller Group Team

REALTORĀ®
CENTURY 21 Executives Realty Ltd.
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