January 2024 Market Update!

Happy New Year!

Now that the holiday season is over and we are fresh into 2024 we wanted to give you an update on what's happening within the market and your listing.

Prior to Christmas, we already saw a shift in the market where we had moved into Buyer's market territory and we are still in a Buyer's market presently. Reason being, interest rates have increased significantly and are still high, which has in turn, affected Buyer's purchasing power and also means Buyer's are more "picky" when looking at homes, taking longer to make a decision. It's not unheard of to have a Buyer view a home 1-3 times and ask a lot of questions before writing an offer. Buyer's need to be VERY sure about moving forward.

Buyers are very price sensitive right now so you need to make sure you are priced according to market value or you will be used as a benchmark to help sell the surrounding properties.

The average days on market is approximately 62 days for the average priced home ($450-$750,000) but the higher priced properties are taking more so between 90 - 150+ days to sell.

A different buyer and price bracket will effect the days on market in our area.

Buyer's market also means we are seeing more inventory on the market. With the increase in inventory, we now have 164 single family homes in the South Okanagan within the price range up to $750,000 and 221 single family homes from $751,000+ .

Single family home sales are down by 19.4% across the South Okanagan and listings are up 42.3%.

The average sales price for a single family home in the South Okanagan is approximately $714,300 but depending on your area, the average price is between $450 - $750,000. Smaller rural communities are generally lower in price point. Please see the below stats for a breakdown in your specific area and type of property (condo/townhouse/house etc).

Although we are in a Buyers market I do not expect prices to continue to go down. We have settled and will stay here for a while.... We will never go back to the pricing we once saw pre-covid but we aren't at the same price point we saw during the peak of covid either. Prices have come down since then.

Prices are holding but you need to be priced according to market value so if you're worth $650,000 for example, then you should list around $650,000 or else you'll be used as a benchmark to help sell the surrounding properties.

The major metropolitan areas are getting busier now (minus the next couple weeks due to the holiday season) and we are just months away from being within the same market. It usually goes with Vancouver being super busy, then Kelowna, then the South Okanagan and we are about 3-4 months behind their markets. However, being that we live in an area that people want to vacation and move to, we tend to be busier than many other communities.

Should you have any questions on the market, your area, or your specific property, please don't hesitate to reach out to our team.

Happy New Year!