B.C. Housing sales slow

Potential homebuyers are becoming worn down by rising fuel and food prices, wary about economic uncertainty, and less flush with equity to take on second-home purchases, the B.C. Real Estate Association believes.
 - By The Vancouver Sun June 17, 2008
 

(Photo: Flickr user, judiann)

As you can see, this excerpt from this article is now 4 years old and not too much has changed, but that may be different over the next several months as you see people giving up on delays to retirement plans and focusing on the positive aspects of a move, even in an uncertain economy.

Certainly since I have returned from Australia there has been a noticeable difference in activity levels compared to previous years. Of course we can always expect a lift in activity in the spring, but I would say cautiously that this feels a little different, a little more sustained.

I did hear last week that almost 50% of sales this year have been under the $400,000 value but I am noticing more activity in the acreage market that was almost non-existent in the past few years and certainly will push that metric higher throughout the year.

Is the tide turning? Conservatively I would say yes. But I remain cautious. I believe the global economy is still going to be a bit of an anchor around our waist although the desire to retire to the Okanagan climate and scenery is still in the long run going to mean a lot to us in the real estate market in Kelowna.

In talking to developers I am hearing that they are seeing that buyer coming back to the table, recognising the good values that are available and making decisions to purchase again.

The other important metric in the market is the sale value to listing value ration. It is tighter than it has been for a few years. It means that Buyers and Sellers are starting to mutually agree on market value. That in itself means that listing inventory has been reduced somewhat as unrealistic sellers decide to exit a competitive selling market place, but that is good news for the Buyer initially and will mean that we will see some momentum in the marketplace that has been missing for a while.

The pendulum does always swing and perhaps in the next few years it will be in the Okanagan’s favour.