The Real Estate market in the Okanagan Shuswap continues at a record- breaking pace. Remember that low inventory is the sign of a robust Real Estate market, not the opposite. Some of the stats have never been this robust, and some you have to go back years to find a comparable level.
There is a great deal of speculation in the marketplace from Realtors, investors, and from buyers and sellers in the public as to what’s going to happen in the near future. Most people think that when the government subsidies go away the Real Estate market is going to soften or collapse. However, a market never responds to one force. It is always a calculation or a summation of all the combined forces pushing on the market. When the government removes the subsidy programs this will be a negative force on the marketplace. However, there are multiple positive forces pushing on the marketplace in the Okanagan Shuswap. We have dramatically increased migration from Alberta, consistent migration from the Lower Mainland, arguably the lowest interest rates in history, extremely low inventory which pushes prices up and pent up demand created from COVID-19 drop in sales in April and May. All of these forces are positive pressure on sales and prices. On top of that, a lot of the people who were helped with the government subsidy programs were not Real Estate buyers and sellers.
Each year the market softens in the fall, so some might anticipate this as the market turning down. However, compare month to month. When you compare August stats to previous August stats it tells a very positive, robust story. Unless we see an about face in interest rates or oil in Alberta shooting through the roof suddenly, I believe we are in for a fairly robust market for a while. The one change that no one can predict is a dramatic increase in COVID-19 cases that shuts our market down again.
DID YOU KNOW
The importance of pricing right
At Century 21, we provide you with the most current information to assist you in making an educated decision when buying and selling real estate.
Pricing your Home
This is the most important decision you will make, as there are many factors to consider; consult with me when you have specific market questions.
Understanding Market Conditions
The real estate market is always changing. Varying economic indicators dictate which stage your local market is experiencing. It helps to understand how market conditions can affect your position as a seller.
- What is a Balanced Market? The number of homes is equal to the demand or number of buyers. Typically, this type of market shows that demand is equal to supply, homes sell within an acceptable time period and prices are generally stable. What does this mean for me? You may experience a more relaxed atmosphere with buyers having a reasonable number of homes to view and choose from.
- What is a Seller’s Market? The number of buyers wanting to purchase homes exceeds the supply of available homes on the market. Typically, this type of market has a smaller inventory of homes and many buyers, homes sell quickly, and prices usually increase; there may even be bidding wars. What does this mean for me? You may experience more negotiating leverage and obtain a higher selling price for your property.
- What is a Buyer’s Market? A buyer’s market occurs when the supply of homes on the market exceeds the demand. Typically, there is a high inventory of homes, few buyers compared to availability, homes stay on the market longer and prices tend to drop over time. What does this mean for me? It may take longer to sell your home with less negotiating leverage in terms of selling price.I can explain what the current market conditions are and how they will affect you during your home sale process.Pricing Your PropertyThe single most important decision you will is determining the right asking price for your property. Contact me for help in pricing right for today’s market.
