Slow Sales but Rising Prices
Items of Note for April:
- Slow Home Sales - the only April with fewer Unit Sales in the past 10 years was 2020.
- No New Listings - since 2003 the only years with fewer New Listings hitting the market were 2003 & 2020.
- Currently in a Balanced Market but close to becoming a Sellers Market.
- Selling Price continue to trend upwards.
Average and Median Price for the overall North Okanagan market continues to trend upwards after bottoming out in December. This can typically be attributed to the type of property selling during the winter months (more urban properties and fewer acreages and waterfront properties etc) vs spring/summer months.
- Average Selling Price $726,274. Up from $551,075 in Dec
- Median Selling Price $646,750. Up from $517,5000 in Dec
Benchmark Price for Single Family homes has increased every month since hitting a low in January.
- Benchmark Price for Single Family Homes $764,400 from $696,500 in Jan (+4.5%). Up from $728,000 in March.
The number of Active Listings continues to rise (+54% from 2022) overall but it is still historically low. Back in Jan/Feb it looked like we were going to be back up to normal inventory (based on the assumption that we would see low sales but normal new inventory hitting the market). But the number of New Listings hitting the market this spring is well below the 10 year average and thus inventory sits about 22% below the 10 year average for the month of April (722 actual vs 923 avg).
Overall we are currently in a Balanced Market (but very close to moving into a Sellers Market).
The Sales to Active Listings ratio is 21% (up from 19.4% in March). Above 20-25% is considered a Sellers Market.
The Sales to New Listing ratio is .54% (up from 44% in March). Above 60% is considered a Sellers Market.
Days to Sell Average remains low. While sales may be slow buyers are quick to act on homes that are priced correctly. There are motivated buyers in the market - just not a lot of them.
So, 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 question I asked last month still holds true. Are prices really starting to rise? Or is this the proverbial Dead Cat Bounce? If you believe all you hear in the news the past month you are led to believe one of two things:
- Price declines are taking a bit of break (for now) but will continue to drop when the economy slows down; or
- Prices have hit bottom and the market is starting to rebound.
But if we continue to see lower then expected inventory hitting the market, the less chance that we will see prices softening anytime soon.