More BIG news this month as average median prices have surpassed peak levels of 2008 and have now reached the highest ever in the history of real estate in the North Okanagan Valley. Again, we ask... where will they go from here and how fast? Sales of single family homes in April this year are up 39% over April last year and continues to outperform April sales since 2005! Now, with just 4 months of inventory on the market, April inventory has not been this low since 2007 when we experienced our strongest real estate market in history. As this Sellers’ market gains more momentum we need to find more inventory for these hungry Buyers. If you want to sell your home, now is the best time ever.
Sales - The total sales for the 12 months ending April 2016 was at 1,068, up 6% from the 1,007 for the 12 months ending April 2015. Year-to-date sales for 2016 remain strong with a 54% increase over last year. The 12 month average for 2016 has now outpaced 2007/08 and is closing in on 2006/07 sales volume.
Inventory - The 12 month average monthly inventory of single family homes is still slightly higher than last year, something that the strengthening sales will eliminate fairly soon. The 12 month average monthly inventory rose 1.5% to 541 for the last 12 months ending in April 2016 compared to 533 for the same period in 2015. Again, we will likely see that reverse as we continue to see strong sales in this spring market. The tightening inventory is pushing us further towards higher prices and a strong market for Sellers. As mentioned earlier, if you want to sell your home, now is a good time.
Prices - Here is the BIG news this month!! Prices have surpassed the peak levels of 2007/08! At $364,813, average median prices for the last 12 months ending in April 2016 are now at the highest level in the history of real estate in the North Okanagan Valley! Average median prices rose 5.2% from 12 months ending in April 2015 just one year ago. Average median prices are up 11.8% from 2012/13 the lowest average median price of the last 9 years. This is 1.2% higher than the previously highest prices of 2007/08. With prices now surpassing those previous peak levels, where will they go from here and how fast? If you are a Buyer sitting and waiting on the sidelines, it will cost you more to continue waiting.
Absorption Rate - The rate at which our inventory is being absorbed by sales continues on an upward trend. The average absorption rate of 16.38% over the 12 month period ending April 2016 is up from the 15.22% for the same period last year. However, looking the absorption for the month of April 2016 only, we can see that it is almost double last April and has not been this high for 10 years since April 2006. Also, at the end of April 2016, there were only 4 months of available homes on the market, down one from last month. That is the lowest April inventory since 2007. Not to sound like a broken record... if you want to sell your home, now is the time!
The spring market continues on a high note. With the indicators of higher sales, lower inventory AND higher prices, it is looking like 2016 is already a good year for Sellers in the North Okanagan real estate market. Buyers will have to be sharp and ready to move or risk losing out to the ever increasing number of new Buyers entering our market. And the longer Buyers wait in this market, the more they will pay for their home. That is just how the market principle of supply and demand works and there is nothing anyone can do about it. It just is.