April bouncing back as expected in the Okanagan Shuswap Real Estate Market
There were intersting changes in April albeit not unexpected changes. All three sectors show a return to recovery path of 2012. The Central Okangan including Kelowna shows an absoption rate of 13.6%. The absoption rate has not been that high in Kelowna since Aprilof 2008. Generally when the absoption rate rises above 12 or 13% we deem it to be a balanced market. Also in the Central Okanagan there were 216 single family residential sales. That is th highest monthly number of sales since July of 2009. Even the Shuswap area is showing signs of recovery with an absorption rate of 9.03%. That is the highest it has been since November of 2009. The north Okanagan is lagging behind the other 2 sectors but is still showing the same recovery trend that was started in 2012. As we mentioned in the last 3 months the shift from HST to the GST would likely cause a temporary downturn in the stats for the first quarter. It is interesting the same story to note that there were over twice as many new homes sold in April of 2013 as there were in any of the first three months of the year. We expect May to continue this path of of slow gradual recovery right through into 2014 and 2015. Paul Fabri who is a chief Real Estate analyst for CMHC came into our office last month and reiterated.