The hot North Okanagan real estate market cooled off a little in July (compared to June) as the summer holidays kicked in and people get out to enjoy the outdoors. However, the numbers continue to set records. There were more homes sold in the North Okanagan in July than have ever sold in the month of July in the history of our local real estate market!
The Buyers keep pouring in as they come here to enjoy all the fun that we have to offer. Sales of single family homes in July this year are up 20% over July last year and at 138 units is the highest monthly sales for July ever! Now, with just 3 months of inventory on the market, July average inventory has not been this low since 2007. This lack of inventory continues to put upward pressure on the average price of homes in this market. As the Sellers’ market momentum continues, Buyers are finding fewer homes and competing with each other to buy them resulting in continued increases in prices. If you know someone who is thinking of selling their home, could you please have them call me?!
Sales - The total sales for the 12 months ending June 2016 was at 1,207, up 23.6% from the 976 for the 12 months ending July 2015. Year-to-date sales for 2016 remain strong with a 46.3% increase over last year. The 12 month average for 2016 continues to be the highest in the history of real estate in our area.
Inventory - The 12 month average monthly inventory of single family homes is now the lowest since 2007. The 12 month average monthly inventory dropped 42 units to 499 for the last 12 months ending in July 2016 compared to 541 for the same period in 2015. We will likely see further downward pressure on inventory as we continue to see strong sales in this market. The tightening inventory is pushing prices higher and creates a strong market for Sellers. As mentioned earlier, if you want to sell your home, now is a good time.
Prices - Average median prices pushed higher again and at $373,146 for the last 12 months ending in July 2016 continue to rise above the highest level in the history of real estate in the North Okanagan Valley! Average median prices rose 7.2% for the 12 months ending in July 2015 just one year ago. Average median prices are up 14.3% from 2012/13 when we saw the lowest average median price of the last 9 years. This is slightly higher than the previously highest prices of 2007/08. With prices now surpassing those previous peak levels, it is a clear indication that Buyers are willing to pay more for their peaceful place in paradise.
Absorption Rate - The rate at which our inventory is being absorbed by sales continues at high levels. The average absorption rate of 20.18% over the 12 month period ending July 2016 is up from the 14.61% for the same period last year. However, looking at the absorption for the month of July 2016 only, we can see that it continues to outperform July 2015 by almost double and is the highest July absorption rate since 2003. Also, at the end of July 2016, there were still only 3 months of available homes on the market. That is the lowest available inventory for July since 2007. Again, not to sound like a broken record... if you want to sell your home, now is the time!
In the news, we now hear that the government’s steps to try and cool the over-heated market in the lower mainland does not seem to have had much affect. It looks like we can prepare for a robust fall market. What is your next move? Let me help you!