The hot North Okanagan real estate market cooled off a bit more in August (compared to July) as people continued to enjoy the great outdoors on their summer holidays. However, the numbers continue to set records. There were more homes sold in the North Okanagan in August than have ever sold in the month of August in the history of our local real estate market! With more Buyers, they are competing to buy the few available homes and that is driving prices up. Sales of single family homes in August this year are up 37% over August last year and at 122 units is the highest monthly sales for August ever! Now, with 4 months of inventory on the market, August average inventory has not been this low since 2007leading to continued upward pressure on the average price of homes in our local market. If you know someone who is thinking of selling their home, could you please have them call me?!
Sales - The sales of single family residential homes for the 12 months ending August 2016 was at 1,240, up 29% from the 955 for the 12 months ending August 2015 and more than double the 605 units sold in 2011. Year-to-date sales for 2016 remain strong with a 45% 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 58 units to 484 for the last 12 months ending in August 2016 compared to 542 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 unless. If you want to sell your home, now is a good time.
Prices - Average median prices pushed higher again and at $375,229 for the last 12 months ending in August 2016 and continue to rise above the highest level in the history of real estate in the North Okanagan Valley! Average median prices rose 7.5% for the 12 months ending in August 2016 over last year. Average median prices are up 12.9% from 2012/13 when we saw the lowest average median price of the last 9 years. This is slightly higher (1.2%) 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 21.27% over the 12 month period ending August 2016 is up from the 14.30% for the same period last year. However, looking at the absorption for the month of August 2016 only, we can see that it continues to outperform August 2015 by almost double and is the highest August absorption rate since August 2007. Also, at the end of August 2016, there were 4 months of available homes on the market, easing up a little from 3 last month. That is the lowest available inventory for August since 2007, further supporting that now is a good time, if you want to sell your home!
In the news, we now hear that the government’s steps to try and cool the over-heated market in the lower mainland has pushed those Buyers to now look to the Okanagan for affordable real estate investments. It looks like we can prepare for a robust fall market. What is your next move? Let me help you!
If you have any questions about the market, please feel free to contact me at any time. You can go to my stats page here to view the graphs and full detailed data.