And the BIG news continues this month as average median prices and now our sales volume have surpassed peak levels of 2008 and have now reached the highest ever for sales and prices 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 May this year are up 31% over May last year and at 153 units is the highest monthly sales ever! Now, with just 3 months of inventory on the market, May average inventory has not been this low since 2008 when sales were last at peak levels. As this Sellers’ market gains more momentum we need to find more inventory for these hungry Buyers. Again, if you want to sell your home, now is the best time to do that.
Sales - The total sales for the 12 months ending May 2016 was at 1,104, up 11.5% from the 990 for the 12 months ending May 2015. Year-to-date sales for 2016 remain strong with a 46.2% increase over last year. The 12 month average for 2016 is now the highest in the history of real estate in our area.
Inventory - The 12 month average monthly inventory of single family homes is now lower than last year and the lowest since 2008. The 12 month average monthly inventory dropped 6 units to 529 for the last 12 months ending in May 2016 compared to 535 for the same period in 2015. We will likely see further downward pressure on inventory as we continue to see strong sales in this spring market. The tightening inventory is pushing prices higher and creates a strong market for Sellers. As mentioned earlier, if you want to sell your home, now is a good time.
Prices - Prices are the BIG news again this month!! Last month prices surpassed peak levels of 2007/08! At $368,271, average median prices for the last 12 months ending in May 2016 are now at the highest level in the history of real estate in the North Okanagan Valley! Average median prices rose 6% for the 12 months ending in May 2015 just one year ago. Average median prices are up 13.7% from 2012/13 the lowest average median price of the last 9 years. This is 1.3% 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 could cost you more to wait any longer.
Absorption Rate - The rate at which our inventory is being absorbed by sales continues on an upward trend. The average absorption rate of 17.35% over the 12 month period ending May 2016 is up from the 14.96% for the same period last year. However, looking at the absorption for the month of May 2016 only, we can see that it is almost double last May and has not been this high for 9 years since May 2007. Also, at the end of May 2016, there were only 3 months of available homes on the market, down one from last month. That is the lowest available inventory for May 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.