First, the market is remaining steady to our predictions of a flat or soft correction for this year. Even though most of the stats report a decline, the absorption which is the stat that illustrates the balance of supply and demand is still above the norms for a balanced market. Usually a balanced market will have an absorption of 12 to 14%. All 3 zones are slightly above that. The other factor is that Realtors are still reporting heavy competition in offers below $500,000 in the North and Shuswap and below $600,000 in the Central Okanagan.
In general, Buyers in these price ranges are still having trouble finding decent, well priced, listings to buy that do not already have offers on them or there are competing offers with theirs. Overall the markets in the Okanagan Shuswap are the best that they can be. In other words they are strong but sustainable. We must be careful not to compare too heavily to markets like 2007 and 2016 and therefore look at our present day market as busting. 2007 and 2016 were not normal markets. They were booms. We are now steady and balanced.
Also for the first time in a couple years the major centers across Canada are showing very small tidbits of optimism. I caution you that these shifts are very “tiny” so far and certainly do not indicate a trend yet. Vancouver, Edmonton Calgary and Toronto have been in a downward spiral for a few years. 2 years ago there was nothing but negativity to report in these markets. Now…
- Vancouver reports sales leveling off and a slight increase in sales in certain segments of the market (Condos)
- The same news is reported with the Toronto Real Estate Board
- Edmonton is reporting an increase of sales YTD for the first time in a while but Calgary sales and prices are still inching down
The other thing to note is that 2 years ago the news was all negative. We were dealing with the B20 stress test, rising interest rates, clamp down on foreign investment (debatable whether that is a negative), new creative tax increases in BC for home owners and buyers etc. What do we have today…
- Interest rates are inching down fairly aggressively
- CMHC has instituted an aggressive first time home buyer’s program to start on September 2
- As stated above Canada’s 2 major economies are showing very slight signs of recovery
What this tells me is that the white collars sitting in their ivory towers of the major lenders in this country are feeling reserved optimism as well.
It seems like this is both a good time to buy and sell. If I can help at all with your Real Estate needs or clarification of the above please don’t hesitate to contact me.