May rain brings Spring flowers, and we look forward to seeing all the beautiful flowers. So far, our ‘Spring’ has been dismal for weather. The month also took a gloomy turn for the real estate market. Our sales are down 27% from this time last year, with 72% more inventory for buyers to choose from. Surprisingly, prices are still holding and are up from this time last year.
However, over the years when we have experienced a market shift the price is the last indicator to change so we suspect we will see a decrease in prices starting next month. Some economists, such as BMO managing director Benjamin Reitzes, predict price drops across Canada in the double digits. Keep in mind our prices are up 17% from last year. In a recent article posted from the Bank of Canada, growth in the 2nd quarter for Canada is expected to be strong. Canada’s wage growth is continuing to grow, exports are expected to strengthen, and consumer spending remains high. Our next potential rate increase will be July 13th.
The days of buying a property and seeing the value increase almost overnight appear to be long past us. We feel the market is shifting to a healthier balance. Our advice when buying is to choose a property you can hold onto for 5 years. Since we have been in the business our market here has always increased in value over a 5-year period or less. This is a more normal market and frankly our group enjoys the return to a need for strong negotiations, strategic pricing, and robust marketing plans.
Like the rain bringing flowers, once we are through this shift of the unknown, we will see the return to balance. We live in a beautiful community and are still seeing (perhaps even increasing the past 2 weeks) the demand from consumers outside our area wanting to call the Okanagan home.
We are going to Vancouver at the end of the month to promote our listings to agents and buyers. If you are thinking of selling, please let us know.
