This truly is a multi-faceted question. The MLS system still maintains a large inventory. The North Okanagan residential listings, combining both single family homes and strata homes is already numbering close to 1,300. Many more listings are expected to arrive on the marketplace as winter gives way to spring.
More listings means the laws of supply and demand are activated. When sellers outnumber buyers, buyers maintain the stronger position when making offers. As long as that situation is present, downward pressure on prices continues and prices inch downward.
A change in this pattern may be just around the corner. I am pleased to be able to say that there appears to be a lot more interest from buyers. I am getting a considerably higher number of inquiries and more showing appointments are being booked on my listings. I assume this is true for many other realtors.
That is certainly a welcome market indicator after several months of a less than exciting market.
Buyers are likely back on the scene because it is simply a good time to buy. Prices have been corrected and our record low interest rates have moved only very slightly upward on some of the fixed rate mortgages.
According to many reports that cross my desk, the economy is showing renewed strength.
The bond markets will reflect that and the mortgage interest rates will be raised, accordingly.
One has to think this is an excellent time to buy. If enough buyers make their move and make a purchase soon, that will curb the decrease in prices.
So, as long as the economy continues to recuperate, the possibility of a return to increasing prices is feasible.
Although, I can see it will take a while to consume the excessive number of listings. I would just be pleased to see the prices stabilize, never mind rise.
My hope is that this renewed interest from buyers is the beginnings of a return of a healthy, balanced market.
Jane Field works with RE/MAX Vernon. To suggest topics for future articles or to ask Jane questions, email her at firstname.lastname@example.org or call 250.503.3755. Previous articles published in the Morning Star appear on Jane’s website – www.vernonrealestate.ca