North Okanagan Single Family Home Sales UP and DOWN in 2012
So many numbers and so little time. To keep things simple I have summarized each area with a brief description and there are also some graphs to show the numbers.
DECEMBER SINGLE FAMILY HOME SALES DOWN IN 2012
Single family home sales in December 2012 dropped by 8% compared to 2011. As you can see by the chart on the right, sales in 2008, 2010, and 2012 were similar with about 28 in each year. Looks like the big year was 2009 with over 50 sales in December.
OVERALL SINGLE FAMILY HOME SALES UP IN 2012
Single family home sales in 2012 were actually up by 20% compared to 2011 with 762 sales. This was almost as active as 2009 when over 800 homes were sold. This pales in comparison to the bumper crop years of 2004 to 2007 when it was common to have well over 1,100 sales in a year. See the graph at right to compare previous years performance.
NUMBER OF HOMES ON MARKET FALL IN 2012
In 2011 the number of homes on the market peaked at around 880 while in 2012 that number never rose above 790. That is a very encouraging trend and hopefully will continue in 2013. The number of homes on the market continues to decline and now sits at 499. This is still high for this time of year considering that if no more homes came on the market it would take about 10 MONTHS to sell them all. I would like to see active listings under 400 homes at this time of year to bring a more balanced situation. The sales to listing ratio for December was only 5% which, you guessed it, means a BUYERS market.
SINGLE FAMILY HOME VALUES FALL IN 2012
I know that home owners don’t want to see their equity slip, but with the constant oversupply and the low demand something had to give. As you can see from the graph on the right, single family home values peaked in 2008 at $402,830. Between 2009 and 2011 home values hovered around the $385,000 level. In 2012 there was another correction with home values dropping to an average sale price of $359,885 or 7% less.
According to the Canada Mortgage and Housing Corporation the average Canadian MLS resale price is forecasted to rise in 2013 to $379,000, up from the $368,900 projected for 2012. In the North Okanagan I believe that there will be a slight rebound in prices that will reflect the National average.