After another relatively slow month during May, I am sure everyone was anxious to hear whether the market improved in June.
Well the answer to that is yes - for single family homes, lots and manufactures homes, but not for strata properties. Numbers are rising and adding to this, I have seen an increase in web traffic and a lot more enquiries from potential buyers, and I have shown a lot more property during these last few weeks. This certainly backs up my theory that the market is about 6 weeks later this year, along with the weather!
Central Okanagan Statistics for June 2011
Date Total S/F Strata Lot Manuf
June 11 331 200 90 20 21
May 11 328 184 119 13 12
Apr 11 285 161 89 12 23
Mar 11 324 185 105 18 16
Jun 10 337 204 96 17 20
Figures are as at close of business June 30, 2011 and may be subject to minor change.In reading the latest forecast for the Central Okanagan made by Cameron Muir, Chief Economist for the BC Real Estate Association
“The average annual MLS® residential price is forecast to edge down 2.7 per cent to $384,000 this year, after increasing 3.9 per cent in 2009. While the inventory of active listings remains relatively high, the number of new listings to the market has pulled back sharply, suggesting that market conditions may soon trend toward balance. The average annual MLS® residential price is forecast to remain relatively unchanged in 2012, up by 0.3 per cent to $385,000.”
To read his full report for BC please go to http://www.bcrea.bc.ca/economics/HousingForecast.pdf
In reading this, my feelings are that we have seen selling prices lower already this year, as it has remained a buyer’s market. The better news is that the number of new listings is slowing and we are therefore heading towards a more balanced market – so it logically follows that prices will flatten out.
Longer term predictions are looking healthier, with the number of ‘new households’ rising, which will bring an increase in demand.
It remains a Buyer’s market and Sellers will need to continue to be very ‘keen’ with their pricing to attract activity. I expect the increased momentum in sales to continue, particularly as the weather forecast is for sunny Okanagan days!
If you have any questions about my latest update, please do not hesitate to contact me.
Tel 250 864 1707