November Real Estate Update
We went from warmer sunshine to winter! What a change! As usual for this time of year our real estate market always slows down. We show almost approx. a 50% drop in Sales compared to last October 2021, dipping only 7.6% compared to last month. Motivated Buyers’ and Sellers’ expectations are able to come closer together, resulting in a much more positive home buyer and selling experience. The bidding wars are over!
Listings increased by 67.5% overall with 7,450 active listings currently on the market. Benchmark prices saw increases in year-over-year comparisons, while the Shuswap region was the exception showing a 4.1% decrease in single family homes, while seeing increases in townhomes and condos.
BC Real Estate Association forecast for 2023 is that with continued high-interest rates and what looks like a difficult 2023 ahead for the Canadian economy, they anticipate that market activity is going to fall below normal levels next year. On the supply side, slow sales activity has led to an increase in inventory, but from record lows. The rapid shift in market conditions has weighed on prices in the second half of this year, though active listings growth has slowed and is short of levels where we tend to see more substantial downward pressure on prices. However, price levels have fallen from their peak earlier this year, so even flat prices from current levels will translate to the provincial average price being down about 5% in 2023 across BC.
Please see below the charts for prices and sales for all regions.
What does it look like worldwide? Home prices are falling everywhere, in Q2 2022 Canada homes went down by -4.3%, followed by Japan -2.7%, France -0.7%, UK- 0.6% and Italy -0.4%.
In the last 2 years Canada doubled almost in home price by 42.8% compared to the US which only went up 24%, Germany 15.5%, UK 10.6%, France 8.4% and Japan 7.2%, Italy stayed at -0.4%. As we went up so much, is there a chance prices will come down more? All other countries did not have the gains as we did.
Households everywhere are facing rising interest and mortgage rates, soaring inflation and Government debts. The cushion of savings and home equity is proving to be quite resilient. And fingers crossed we won’t get a recession, but just a slow down next year with the following years changing upwards again.
We live in an awesome country and our unemployment is low, which is a very good sign.
With the snow around it is starting to feel like Christmas and malls are already starting to decorate. My daughter is having a Christmas Wedding this year, so exciting times ahead for our family.
Thinking of re-financing, or any questions about mortgages, equity etc, please contact Stephanie at 250-469-4310 she is very creative for helping you achieve your goals.
Wishing you a wonderful pre-Xmas Season, always working in your best interest.
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Warmest wishes,
Annette and Team
Quote of the day: Miracles happen every day, change your perception of what a miracle is and you'll see them all around you… what is your miracle today?
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Move Okanagan Group – serving Kelowna – Lake Country – Vernon – Silver Star
Not intended to solicit properties currently listed for sale/under contract. Based on MLS® active residential listings taken & sold units as reported by Association of Interior Realtors® in 2022 and YTD October 2022 for Central Okanagan.