Charlie Veaudry

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June sales dropped 12.3% over June last year similar to what happened with sales last month in May. Our local real estate market continues to see-saw it’s way to recovery. Even year to date sales continue to drop and are now down 9% from 520 last year to 464 this year. The gradual restoring of overall consumer confidence that we are seeing throughout BC and the rest of Canada is not as steadily reflected in the real estate market in the North Okanagan. This see-saw effect has shown up about every other month since November of 2014. 

 

Sales  - The total sales for the 12 months ending June 2015 was at 975, up only 5% from the 12 months ending June 2014. The recovering market continues to loose steam, although this is still the highest

volume of sales in the last 7 years since 2008. This month’s increase over last year is lower than the last 2 month’s increases of 10% and 16%, another factor that shows a stalling recovery.

 

Inventory  - The average monthly inventory of single family homes dropped 10.3% to 539 for the last 12 months ending in June 2015, again, the lowest average inventory we have seen in the last 7 years.

Inventory has not been this low since 2008, at the start of the recession triggered by the US banking

crisis. The drop in the 12 month average was less than the 11.9% of the last two month’s. With more

Buyers out there looking for reasonably priced homes Sellers are deciding that they can finally make that

move that they have had to put on hold since 2008.

 

Prices  - Prices are stagnating due to the slower sales though we are seeing continued (but weakening)

slight upward pressure on average median prices. At $348,443, average median prices for the last 12

months ending in June 2015 edged up slightly by 1.1% from 12 months ending in June 2014 and up 6.9%

from 2013 when we reached the lowest average median price of the last 8 years. If more Buyers enter the

market and the inventory tightens, we will see more upward pressure on prices, otherwise expect

stagnation to continue and prices may even drop slightly.

 

Absorption Rate  - The rate at which our inventory is being absorbed by sales dropped slightly again

compared to last month. The average absorption rate of 14.66% over the 12 month period ending June

2015, is still the highest in the last 7 years and down again from last month’s 14.96%. At the end of June

2015, we still have 6 months of inventory available on the market, the same as the last 2 prior months.

This is still considered a Seller’s market and will continue to put upward pressure on prices as Buyers

compete for the available homes.

 

From these numbers, it will be interesting to continue to watch how the summer market unfolds which is

usually slightly slower, historically. It appears that Buyers and Sellers are hesitating with their plans.

Buyers are still leading the way but losing momentum. Sellers who have tried to sell their homes over the

last few years will still have a much better chance this year as we see more and more Buyers.

 

At this point we still expect that the market over the next 6 to 18 months will be characterized by slightly

increasing sales and lower inventory moving more strongly towards a market that favours Sellers with

more competition from Buyers and slowly rising prices. Prices will rise when consumer confidence

gathers momentum and brings with it more Buyers putting downward pressure on available inventory.


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.

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5603 27th Street Vernon BC V1T 8Z5 CA

Charlie Veaudry

I make myself available at all times. My web site is here to help you 24 hours a day. You can search listings at your own convenience, browse reports, and read up on real estate info on your own terms. When you are ready to see a listing in person, or just have a simple question, please dont hesitate to contact me!

 

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