Hello,
As the summer season is in full swing, our beaches are bustling with both locals and tourists, our restaurants are abuzz with diners, and traffic is flowing steadily, it's a perfect time to reflect on the real estate market. While the Okanagan area has become increasingly busy, we are witnessing a shift in our real estate market and moving from a balanced/seller's market to a buyer's market. This shift comes with an increase in price reductions and longer days on the market. Although our inventory levels are starting to rise, they remain relatively low for this time of year.
Over the past six months, we observed a rise in both sales volume and the average sales price. In January, only 72 homes were sold compared to 249 in June, representing a significant increase. Similarly, the median price rose from $877,000 in January to $965,000 in June, reflecting a growth of 10%. However, the market reached its peak in May, with 290 sales and a median sale price of $990,688. Since then, our sales have declined by 15% and prices have decreased by 3%.
Despite these changes, we do not believe it is cause for alarm or indicative of a substantial correction. Our market is not crashing, and we remain optimistic about its future. The current situation can be attributed to a slight correction following the rapid flurry of activity and price increases we experienced from 2021 to mid-2022. With interest rates on the rise, buyers are understandably cautious about making a wrong decision and overpaying in the current market. However, it is important to note that people still have a strong desire to move to the Okanagan. Additionally, with interest rates projected to decrease by the second quarter of next year, we anticipate a resurgence of activity in our market.
If you have any questions about the market or specific topics you would like us to cover in our newsletter or podcast, please do not hesitate to reach out. We are always just a phone call away and eager to assist you.
Warm regards,
Shannon and Tamara
