2023 First Half Recap

Sales stats thru the first half of 2023 illustrate how resilient the North Okanagan real estate market has been.

Even though the Unit Sales and Sales Dollar Volume are way down compared to the same time frame last year, the market continues to surprise, as we have seen a 20% increase in the Median Sale Price since the start of the year.

So what about all that noise we were hearing last year, from the “EXPERTS”, who were saying it was a bad time to buy a home?  Hmmmm

So looking forward, is it still/now a bad time to buy?  Especially with the interest rate hikes we have seen recently.  Obviously a lot depends on your financial situation and affordability etc. But if you can get into the market and don’t plan on making a move for a number of years the odds of prices being up compared to down are pretty damn good.

There is risk in every market.  But there can be reward in every market.


June Market Snapshot

June Sees Strong Sales in North Okanagan

Items of Note for June:

  • Home Sales Surge - after a sluggish spring market the summer market kicks off with a bang as sales almost hit the 10 year average for first time since February. 
  • Prices continues to rise - Single Family Benchmark Prices down only 3% from peak.  Condo Benchmark Price hits new all-time high.
  • The overall North Okanagan market entered into a Seller's Market.

Unit Sales With 210 Unit Sales June was only 4% below the 10 Year Average of 219 Unit Sales.  And the 210 Unit Sales was 15% higher then last year's 183 sales (this marks the first time that Year-over-Year sales increased since November 2021).

Average and Median Sales Prices for the overall North Okanagan market were up slightly from May and have been trending upwards since December.  

  • June Average Selling Price $708,7606.  Up from $689,626 in May but down from $768,153 last June.
  • June Median Selling Price $649,950.  Up slightly from 641,600 in May and virtually the same as last June's $650,000.

Benchmark Price for Single Family homes has increased every month since hitting a low in January.

  • Benchmark Price for Single Family homes in June was $785,800 - Up from $777,600 in May.  The Benchmark price for single family homes has increased 13% since bottoming out in January ($696,500).  $785,800 is the highest the Benchmark price for single family homes has been since June 2022 ($798,500) and is only 2.7% below the peak price in May 2022* ($807,600).
  • At $354,100 the Benchmark Price for Condos broke an all-time high.  The previous high was $353,400 in April 2022*.   

    *The formula to determine Benchmark Price was changed in June 2022.

The number of Active Listings is up 22% from 2022 (815 vs 666) but the number is still historically low and currently sits about 21% below the 10 year average of 1035 active listings for June. 

New Listings hitting the market were down 12% Year-over-Year (315 vs 359) but were only about 8% below the 10 year average of 341.

The overall North Okanagan market has now entered Seller's Market territory.
The Sales to Active Listings ratio is 26% (up from 22% in May). Above 20-25% is considered a Sellers Market.
The Sales to New Listing ratio is .67% (up from 51% in May).  Between 40-60% is considered a Balanced Market.

Days to Sell Average remains low remains low at 55 days.

Overall, the North Okanagan market continues to be quite resistant.  The market for single family homes in the lower price ranges has really heated up.  But we are seeing sales across all price ranges and property types.  The big question is how will interest rates - if they continue to rise - effect sales and prices as we head into the dog days of summer?

Central Okanagan

Junes 504 Unit Sales were only 10% below the 10 year average of 563 for June and were 31% above last year's 386 sales.  However, sales did drop 9% from May's 556 sales. 

June saw 1142 New Listings hit the market which is 13% above the 10 year average of 1008.  And the 2284 Active Listings, is only 2% below the 10 year average of 2336.  So the Central Okanagan continues to be one of the few areas that of hasn't really been effected by low inventory levels.

The Benchmark Price for Single Family homes in the Central Okanagan is currently $1,063,800 which is down slightly from May's $1,048,900 and 6% below the April 2022* peak price of $1,131,800. 
Townhome Benchmark Prices were the second highest on record - only trailing May 2022* ($785,900 vs $829,800).

*The formula to determine Benchmark Price was changed in June 2022.

Interest Rates

July 12 is the date for the next Bank of Canada announcement on interest rates and the betting money is that rates will increase another 0.25% at that time - taking the overnight rate to 5% which would be a new 22 year high.

If rates do rise again will that be the be enough to slow down home sales?  And probably more to the point, will increased rates be enough to slow down rising home prices?  

Stay tuned.

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If you or someone you know is looking to buy or sell and need help don't hesitate to call, txt or email.?  My door is always open.  
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