We are moving into Christmas and with that we have the last market update of 2022.
The housing market has shifted, and we are no longer in the Seller's market we've seen over the last 1.5 years, fast sales and higher selling prices. Due to the Buyers being put through the ringer during the last 1.5 years, we now have this gap between Buyers and Seller's right now between pricing levelling, not enough inventory available, longer days on market, interest rates have risen significantly and are expected to go up again, lending restrictions have tightened and Buyers motivation have changed. We need this gap to close some more for a change in the market to create a Balanced market.
Interest rates have affected Buyers purchasing power heavily as they cannot afford what they once did and are consequently more picky. Buyers are taking longer to consider their options and many are not willing to compete due to the effects of the last 1.5 years on the market. All that coming together it has created a very price sensitive market that is now a Buyers market without the inventory available.
At this time of year you will also notice many Sellers will be taking their homes off the market as they don't want to sell during the winter and as such inventory will be lower, and there will be less competition but serious Buyers still looking to buy before interest rates go up again.
Prices for single family dwellings are down between 2.4-4% depending on the region, sales are down across the province and in the South Okanagan we are down 42.6% (number of units sold) from this time last year but we also have seen an increase in listings which explains why we are seeing longer days on market. Although we are in low supply for inventory still, we have this big gap between Buyers and Sellers that hasn't settled yet. Buyers are holding back and waiting on prices and Sellers are holding on prices as well. Also, keep in mind, the increase in listings is because we have had such a low inventory, we are not in excess right now.
All this taken into consideration we are anticipating moving into 2023 with a steady market.
Please see attached for the South Okanagan statistics as a whole, broken into each market segment, and the home buyer statistics. For a market valuation specific to your region or home please reach out and we would be happy to assist.
The housing market has shifted, and we are no longer in the Seller's market we've seen over the last 1.5 years, fast sales and higher selling prices. Due to the Buyers being put through the ringer during the last 1.5 years, we now have this gap between Buyers and Seller's right now between pricing levelling, not enough inventory available, longer days on market, interest rates have risen significantly and are expected to go up again, lending restrictions have tightened and Buyers motivation have changed. We need this gap to close some more for a change in the market to create a Balanced market.
Interest rates have affected Buyers purchasing power heavily as they cannot afford what they once did and are consequently more picky. Buyers are taking longer to consider their options and many are not willing to compete due to the effects of the last 1.5 years on the market. All that coming together it has created a very price sensitive market that is now a Buyers market without the inventory available.
At this time of year you will also notice many Sellers will be taking their homes off the market as they don't want to sell during the winter and as such inventory will be lower, and there will be less competition but serious Buyers still looking to buy before interest rates go up again.
Prices for single family dwellings are down between 2.4-4% depending on the region, sales are down across the province and in the South Okanagan we are down 42.6% (number of units sold) from this time last year but we also have seen an increase in listings which explains why we are seeing longer days on market. Although we are in low supply for inventory still, we have this big gap between Buyers and Sellers that hasn't settled yet. Buyers are holding back and waiting on prices and Sellers are holding on prices as well. Also, keep in mind, the increase in listings is because we have had such a low inventory, we are not in excess right now.
All this taken into consideration we are anticipating moving into 2023 with a steady market.
Please see attached for the South Okanagan statistics as a whole, broken into each market segment, and the home buyer statistics. For a market valuation specific to your region or home please reach out and we would be happy to assist.
Sara and Katie Amos!
The benchmark price for homes in the South Okanagan (Which includes Summerland, Penticton, Okanagan Falls/Kaleden, Oliver, Osoyoos, and Keremeos) saw increases in year-over-year comparisons across all categories.
