Charlie Veaudry

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March 2014 - Where Is The Market Right Now?

 

The spring market continues to strengthen with rising sales, falling inventory and prices solidifying.

 

Sales

 

The total sales for the 12 months ending February 2014 were at 797, up 6.8% from the 12 months ending February 2013 and the highest volume of sales in the last 4 years since 2010.

 

Inventory

 

The average monthly inventory of single family homes dropped to 622 for the last 12 months ending in February 2014, the lowest average inventory we have seen in the last 6 years. Inventory has not been this low since 2007 which is before the start of the recession that started in March, 2008.

 

Prices

 

Average median prices continue to rise. At $341,836, average median prices for the last 12 months ending in February 2014 rose 5% over average median prices for the 12 months ending in February 2013. This increase is for average median prices across the board and is largely due to the fact that prices on higher end homes have been reduced so much that sales are now starting to recover. This is causing the illusion that prices are increasing in all home categories and that is definitely not true. 

 

For instance, right now some price ranges in some neighbourhoods are starting to rise slightly but other price ranges have just stabilized or are still dropping slightly. Therefore, overall average price in any given marketplace cannot accurately predict what is happening. I have found that using an HPI (Home Price Index) works best. This HPI considers all the sales of a typical house in a certain area and compares them to the same type of houses sold in the previous years. We find when we do an HPI that house prices are doing different things in different areas and in different price ranges. I would be happy to do an HPI evaluation on any property you have. Simply give me a call or email.

 

Absorption Rate

 

The rate at which our inventory is being absorbed by sales rose to an average of 10.53% over the 12 month period ending February 2014, the highest in the last 4 years. At the end of February 2014, there was 17 months of inventory available on the market.

 

From these numbers, it looks like we can expect the market to continue to rise as we enter the busy spring market. March sales this year month-to-date continue to show improvement over March 2013 so we are experiencing an early start to the spring 2014 real estate market in the North Okanagan.

 

The market over the next 12 to 18 months will be characterized by continued increasing sales and lower inventory moving strongly towards a market that will favour Sellers with more competition from Buyers and higher prices. Prices will continue to rise as consumer confidence gathers momentum and brings with it more Buyers.

 

If you have any questions about the market, please feel free to contact me at any time. You can go to my stats page on my web site with graphs and full detailed data.

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Office Location:

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!

 

When you make the important decision to buy or sell a home, I am committed to going the extra mile to ensure that all of your needs are successfully met in a professional and honest manner.

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