A time to Buy or a Time to Sell?
A good way to measure how the local real estate market is doing is to look at the “months supply of inventory”.
What is it, you ask? Well, it is how many months it would take to sell all of the homes that are currently listed for sale. This is if no new listings were added. It shows how ACTIVE buyers currently are!
Typically, a six month supply is considered to be a balanced market. If it takes longer than six months to sell the current inventory then it is considered a buyer’s market. This is usually represented by a higher level of inventory. If homes are selling in less than six months then it can be referred to as a seller’s market. This also accompanies lower inventory thus bringing higher competition. This is only a guideline and sometimes other factors can play into what is happening in the market. Consider the seasons, does moving into autumn and then winter affect the housing market here in the Okanagan? While there may be fewer homes on the market to choose from at this time of year, will that help buyers or sellers? Let’s look at three regions here in the BC Interior to see what trends are emerging for this fall, for the sale of residential homes.
Months supply of inventory: 5.9 months
Median Sales Price: $661,250
Months supply of inventory: 6.9 months
Median Sales Price: $677,500
Months supply of inventory: 6 months
Median Sales Price: $475,000
Months supply of inventory: 6.8 months
Median Sales Price: $460,000
Months supply of inventory: 4.7 months
Median Sales Price: $481,500
Months supply of inventory: 5.4 months
Median Sales Price: $400,000
As we can see from these regions, the time has decreased in how many months it takes to sell a residential property! Central Okanagan prices have dipped only slightly and in the other two areas, the price has gone up! So no, the prices are not softening and no, it’s not necessarily a buyer’s market! If you see something you love, then what are you waiting for? Prices to go up?
If you are thinking of putting your home on the market now and want to know how much it could realize in a sale then don’t hesitate to get in touch with us. We can review your property and recent sales in your neighbourhood to help you make the right choices and get your home SOLD!
Tamara & Shannon Stone