The Numbers:
The South Okanagan Real Estate Board (SOREB) is finally seeing what appears to be a sustained recovery in the number of sales this year. Year to date, SOREB reported a total of 1427 residential sales for the first nine months of this year across the board area, up almost 28% from the same period in 2013.
Oliver’s sales were up almost 34% for a total year to date residential sales of 123. This compares to just 92 sales in 2013, but 125 sales in 2012.
In Osoyoos the market has improved even more. There have been 157 residential sales so far this year, up almost 47% from 107 sales to date in 2013 and only 96 in 2012.
Across the SOREB area the total number of sales in September of this year was 203 compared to just 163 sales in the same month last year and representing the most number of sales in September since 2007.
In Oliver 11 single family homes sold in September for a total year to date of 89 sales. This compares to 6 single family sales in June 2013 and a total year to date last year of 71. The average single family home sold for $304,429. So far this year, there have been 17 mobile home sales and 17 condo/townhome sales in Oliver.
In Osoyoos, 9 single family homes sold in September for a total year to date of 93 homes. This compares to 7 sales in September 2013 and a total year to date sales last year of 68. The average sale price of a single family home sold this year is $335,385. So far this year, there have been 3 mobile homes sold and 61 condo/townhomes sold in Osoyoos.
Buyer’s Market or Seller’s Market?
There is always lots of talk about whether it’s a ‘Buyer’s’ Market or a ‘Seller’s’ Market. But, what does that mean? And, where are we at?
Generally, the distinction is made by determining the how many months it would take to sell all of the inventory (active listings) on the market. This is determined by dividing the number of active listings by the average monthly sales.
A buyer’s market means that homes are selling more slowly, and negotiating position favours the buyer because there is ample supply and less demand. Usually, 7 or more months supply would indicate a ‘Buyer’s Market’ and prices may decrease.
A seller’s market means that homes are selling very quickly, and the sellers may have the upper hand because there is little selection and multiple buyers may be considering the same property. Prices may be increasing in this instance. Less than 4 months supply of listings is usually considered a ‘Seller’s Market’.
A supply of 5 to 6 months would be considered balanced. There is a good selection, and prices are relatively stable.
At the end of September there were 170 active residential listings in Oliver. The average sales per month year to date have been 13.7. So, there is currently a 12 month supply of inventory and we are still experiencing a ‘Buyer’s Market’.
In Osoyoos, there were 326 active residential listings at the end of September and the average monthly number of sales year to date has been 17.4. Therefore there is over 18 months supply. The market in Osoyoos is still strongly a Buyer’s Market even though there has been a greater increase in the number of sales in 2014 than most other communities in the South Okanagan.
Should I sell? Should I buy?
There are always times when you don’t have a choice. The trick to optimizing the value of your home and the price that you will get for it in a buyer’s market is not to leave too much ‘wiggle’ room. Buyers are expecting good value and are not willing to look at listings that are a little out of range or make offers when there are other comparable homes on the market that represent better value.
If you are selling to re-purchase in this market, the values are relative. You will sell at a lower price, but you will also benefit from a lower price on the purchase of your new home. This can actually be very advantageous if you are considering a move up to a larger or more expensive property.
If you are selling and moving out of the market, it is a little bit more difficult to come to terms with accepting a lower price than you may like. Obviously, everyone is in a different situation, and how you move forward will depend on what the other costs involved are, and your level of motivation to move.
If you are in the market to buy (especially your first home), you are in luck! The timing is ideal. Prices are very low compared to where they were a number of years ago, and interest rates are still at all time lows. This combination of low prices and low interest rates makes buying a home very affordable.
Everyone’s circumstance is different. For a personal consultation on your particular needs and desires, give Beth Garrish a call. She will listen to you and help you determine the best course of action for you.