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.