Charlie Veaudry

Serving you with passion!

May sales bounced back from the slower pre-election April sales. With 155 single family homes sold, that is the highest number of May sales ever in the North Okanagan, up 51 from April and 2 higher than May 2016. The election is over, but uncertainty lingers as we wait to see who forms government. Consumer confidence will remain low as will real estate. Also, the low inventory continues to have an unusual impact on our real estate market with homes selling quickly (my listings average 5 days on the market!), selling for above the asking price due to multiple offers and reluctance for people who want to sell but are afraid they will not be able to find a new place. Last month I shared some techniques I developed to help my clients overcome this. I got a good response so I will cover it again at the end of this update.


Sales - Sales of single family residential homes for the 12 months ending May 2017 eased a little more to 1,264 dropping to a 14.5% increase over last year down from last month’s 18% increase. The real estate market seems to be reflecting the uncertainty of our political landscape. Given that the real estate market is dependent largely on consumer confidence, this makes sense. The uncertain political climate will continue to soften activity although June month-to-date sales are up 10% from the same period last year.


Inventory - The 12 month average monthly inventory of single family homes is still the lowest since 2006. The 12 month average monthly inventory dropped 160 units to 369 for the last 12 months ending in May 2017 compared to 529 for the same period in 2016. Home owners are still reluctant to list their homes.


Prices - Average median prices moved up slightly to $392,554 for the last 12 months ending in May 2017. Prices continue to be above the highest levels in the history of real estate in the North Okanagan Valley! Average median prices are still 6.6% higher for the 12 months ending in May 2017 over last year and are up 21.3% from 2013 when we saw the lowest average median price of the last 10 years. This is still 8% higher than the peak prices of 2008. New records for high real estate prices continue in our market. As long as there are more Buyers than there are homes for those Buyers, we will see upward pressure on prices no matter, it seems, how much the sales volume drops.


Absorption Rate - The rate at which our inventory is being absorbed by Buyers continues to climb. The average absorption rate of 27.73% over the 12 month period ending Map 2017 is up from the 17.35% for the same period last year. Also, at the end of May 2017, we are down to 2 months supply of homes available on the market from 4 in April.


So as promised in my opening paragraph, here is a repeat of my ideas from last month about how we deal with finding homes for the Buyers who are looking and for the Sellers who want to sell but are afraid they won’t find anything to buy. #1). buy first, then sell and use the rising market to fund the overlap costs (if you would like more details on this, please ask me). #2). Get your ducks in a row (financing, etc.) then monitor the market (with my help, I can show you homes 24 hours before they are shown to the general public, and I also know of many “pocket” listings) . When you find a home you like, be prepared to put in an offer right away (with my portable office, I can submit your offer from inside the house we are viewing). #3). Let me know where you want to live and I will canvass that area to see who wants to sell but has not listed yet. When the going gets tough, the tough must get creative!


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 at 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.

Read full post

I get asked this question so often, I think it’s time to share this on my blog.

Why is there such a difference between the assesed value of this home and the price they are asking for it?

The assessed value of a home for property tax purposes does not co-relate to the market value for that home. The main reason for this is that the assessed values are about 18 months behind current posted sale prices. That is how long it takes BC assessment to update their values. That means in this rising market assessed values can be 15% (more or less) on average below current market values. The same things happens in a falling market only with the opposite effect with assessed value showing higher than sale prices.


The other thing about assessed values is that home owners have 30 days after they receive their assessment each year to appeal that assessment and some people do. They appeal their assessment for a variety of reasons. Some want to try and keep their taxes down as much as possible so they try to get the assessed value lowered. Others who are considering selling, will try to appeal their assessment to get the value up higher thinking that it will make their property seem more valuable. It’s quite a general misunderstanding. I looked into it because so many people ask and are confused about assessed values versus market values.


The result is that assessed values are all over the map and are not a good measure of the market value of a home. I proved this several times by running a comparison of recently sold properties comparing the sale price with the assessed value. If you look at the chart below you will see an example of what I mean. These sales from the last week (see chart below) show that the assessed value can be as much as $139,000 less than the sale price. I have seen previous examples where the difference was even much higher. Some listings in my list do not even show the assessed values because they are not relevant to the current market value.


Can you see how looking at assessed values provides little insight into the market value of a home and property?


Here is the actual definition of market value:


The most probable price (in terms of money) which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue influence


I hope this helps.


Please contact me any time if you have any questions. 

Table of recent sale prices compared to assessed values.

Read full post
The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.