June Market Update
The year to date (YTD) average sale price of a single family home in the Central Okanagan of $1,213,717 in May 2022 was down from April’s YTD price of $1,233,122. Market prices are slowly declining from February’s peak. I posted a chart earlier this week of the month over month prices, included below, which lays out this recent trend. However, prices are still up 27% over this period a year ago and it’s doubtful prices will fall to pre-2021 prices in my opinion, as we are just now hitting a somewhat balanced, normal market. And, in January 2022, the Canadian Real Estate Association reported there is a shortage of nearly 1,000,000 homes in Canada and builders haven't filled that demand with new built homes. There is an overall shortage still in the market. In BC alone, we have a shortage of at least 25,000. Until new homes are built to fill this demand, sales of pre-owned homes are not enough to completely satisfy the market.
Inventory is up an astounding 72% over this time last year though, giving active buyers more choices when it comes to buying a home. Having more choices translates into fewer multiple offers on most homes and less pressure pushing prices upwards dramatically. This is normal market activity. I’m looking forward to working in and helping my clients in this normalized market.
Average days on market is holding steady around 26 days (single family homes). That means that a well presented home, priced properly, is selling quickly for or above asking price in most areas. On the other hand, a home listed slightly above the comparable home prices in a neighbourhood are tending to sit and take longer to sell. It’s more important now than it was even six months ago to price your home for sale properly.
We are now right around 3.5 months of available inventory (4-6 months is a balanced market), so sellers are having to adjust their expectations and as Realtors® we are slightly changing our strategies as not all homes are selling within the first 30 days on the market. In fact, only 55% of homes listed on the market sold in May, which is just at the top end of the balanced market range of a 40-60% list to sell ratio. That does not mean these homes will not sell, just that it is taking a little longer on average than it was a few months ago. If you would like more information on list to sale ratios, send me an email with the title 'list to sell" and I will tell you more.
There is a definite shift in the market. Will this trend continue through the second half of the year?
Send me an email and let me know what you think