June Real Estate Update
Residential real estate sales for the month of May suggests market activity?on a path of normalizing?while demand still remains high.
Residential unit sales were recorded across our Assoc., marking a?24.9% decrease?compared to the frenzied number of units sold recorded in May last year.?Keep in mind last year was not a normal year!
New residential listings are progressing as expected for the?month of May with a 5.4% uptick?with 3,166 new listings recorded compared to the same period last year. The overall?active listings also saw a healthy increase with 5,943?listings?currently on market, an increase of 27% in year-over-year comparisons.
The benchmark price for homes in the Central Okanagan, North Okanagan, South Okanagan and Shuswap/Revelstoke regions held their double-digit percentage increases in year-over-year comparisons for another consecutive month across all home categories, with the greatest increase being for condominiums in?the North Okanagan. The benchmark price for condominiums in the North Okanagan recorded a 30.9% increase compared to May 2021.
It is important for buyers and sellers alike to understand?that sales are not the same thing as value. The?value of homes remains steady and hasn’t gone down, despite sales,?which is the number of homes sold, dipping slightly. Demand remains high, even with the tightening of mortgage rates. Hopefully we will see even more inventory coming on to market in the warm summer months to help meet that demand.
The average number of days to sell a home, always a good barometer to watch, increased?from 39 days in April?to 41 days in May, this is for all of the Okanagan areas but varies depending on different neighbourhoods.
So what are the predictions??There are very different forecasts depending on what expert you talk to. Some brokers had news releases with 10% price gains this year again, other sources indicate a 10% decrease.?We have very unpredictable times,?as we never recovered from a pandemic, nor dealt with huge inflation with hardly any unemployment and shortage of supplies, gaining oil prices with huge debts on government levels and a war happening.
I believe our market will become a balanced market by year end, with maybe some downward corrections,?as we still have a back log of Buyers wanting to buy.?We do see more price reductions on a daily basis, but often because homes were overpriced from the start.
Higher mortgage rates coupled with more inventory will lead to slower home price growth but?unlikely major declines in home prices.
I also believe that we will see an increase this summer in first-time buyers entering the market in an effort to achieve homeownership.
Let’s hope for warmer weather soon, can’t wait for those hot Okanagan evenings! Always working in your best interest.
领英推荐
For latest Statistics regarding pricing and sales per regions, please see charts below.
Best wishes,
Annette with Chad, Scott, Mike and Gary
Quote of the day:?The beauty of standing up for your rights is others see you standing and stand up as well.
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Move Okanagan Group – serving Kelowna – Lake Country – Vernon – Silver Star
Not intended to solicit properties currently listed for sale/under contract. Based on MLS??active residential listings taken & sold units as reported by Association of Interior Realtors??in 2022 and YTD May 2022 for Central Okanagan.