July Real Estate Update

Dated: July 23 2018

Views: 88

Summer has arrived ! So nice to have the hot weather finally here.

As you probably know there have been a few things implemented by the Federal and Provincial governments in the past 6 months aiming to cool down the Canadian and B.C real estate markets. I get asked all the time if we are seeing any effect of these initiatives. I feel that we are starting to see the effects of these policies. I have seen a clear shift from a seller’s market to more of a balanced market at this time. The first indicators we see are sales volumes drop. In the month of June we saw a 22% drop in sales compared to June 2017 and a drop of 19% year-to-date compared to 2017. Here are some of the highlights:

Days on market has decreased by 2% to 42 days in June.

The number of sales has decreased by 22% to 526 units for the month of June 2018 compared to 680 units in June 2017.

Number of listings has decreased by 1.5% to 1193 listings. However, with sales being down by 19% year to-date we have more inventory for buyers to choose from which can be a good thing.

According to the latest pricing Stats house prices have declined a bit over the last 3 months and the average house price is now $717,720 (down by approx. 2%) With this trend a few positive things will happen. Buyers will have more product to choose from when looking for a home. In addition, sellers will still have buyers waiting for that special home. However, sellers will have to make sure they get good pricing advice when listing their home for sale. 

I am still getting a lot of Vancouver Buyers and I find that has not yet slowed down, (my last 5 deals were all from Vancouver buyers) even so the Vancouver Sales are down 40% on single family homes. Condos are still selling much better.

Average Townhome prices are 501,998.-, Lots are 242,925.- and condo at 359,860 .

The National Stats:

The Real Estate slowdown isn’t exempt to Vancouver. Canadian home sales slid 16% year over year in May, with the National average sales price dipping 6%. It’s expected June numbers won’t fare much better when they are released in the coming weeks. It’s safe to say reducing the average Canadians mortgage size by 20% has put a dent in home sales across the nation.

As we now have more of a stable market I believe prices will not go down too much more and will level off.

This week the Bank of Canada increased its interest rate by 0.25%. Banks already increased their prime rate and mortgage rates. A 3 year variable mortgage rate will continue to offer savings over the current 5 year fixed rate.

If you found this article interesting, FOLLOW / LIKE us on Facebook or please feel free to SHARE it.

Annette Denk

Move Okanagan Real Estate

Blog author image

Annette Denk

Annette has been in Real Estate since 1994. Her determination to uphold a tradition of trust, integrity, and expertise has earned her a long list of satisfied clients who recommend her at every opp....

Latest Blog Posts

July 2021 Real Estate Update

Hot weather with a still hot real estate market! The Okanagan has become the new Italy! It is now… stay cool from being…  stay safe! Cold homemade lemonade is beside me right now

Read More

June 2021 Real Estate Update

Residential sales across the Okanagan, BC and Canada are showing signs of calming after months of record highs.There is a slight reduction in pressure that is creating a calming effect for a

Read More

May 2021 Real Estate Update

First of all I would like to welcome Chad Bennett and Carolynn Moon to the Move Okanagan Group who both joined this month. Chad was number 3 at Re/Max Kelowna and Carolynn was

Read More