When comparing the first quarter of 2019 to the same period of 2018 the following is notable:
- Sales are down 12 % in the Central Okanagan, down 10% in the Shuswap and remained the same in the North Okanagan
- Absorption is down 45% in the Central Okanagan, down 20% in the Shuswap and down 20% in the North Okanagan
- Price is down 3.5% in the Central Okanagan, no change in the Shuswap and down 2% in the North Okanagan
- Inventory is up 22% in the Central Okanagan, up 10% in the Shuswap and up 15% in the North
What these statistics mean is that the market is continuing its soft correction. That means that although we are correcting the sky is not falling. We are still in a balanced market. The significant point is that the Central Okanagan is correcting more than the Shuswap or the North Okanagan. The Central Okanagan was also booming more than the other 2 zones a few years ago so it is logical that it would correct the most. While Alberta and the Lower Mainland continue their hard correction they are pushing migration to the Okanagan Shuswap. That is having a positive effect on our market. In particular the percentage of people moving from the Vancouver area to the Okanagan Shuswap has doubled in the last half decade. This is what is moderating our correction and maintaining a reasonably active market. Our correction is more prominent in the higher price ranges and less prominent in the lower.
We still see multiple some offer situations on well priced, lower priced housing. However, sellers in all price ranges are going to have to get more aggressive in their pricing to attract buyers. Lastly, the political forces that have endeavoured to slow the country’s 2 major markets down, Toronto and Vancouver, are realizing that they have accomplished this. We expect to see some relief in interest rates and the stress test in the coming months which should start to lead us towards a recovery market and stop the landslides in the 2 major centers. In summary we are in pretty good shape in the Okanagan Shuswap Real Estate Market.