Single Family Homes July Update
The good news is that the weather has finally started to warm up and we can truly start to enjoy the Okanagan summer sunshine. July single family home sales have been less than hot and some might say luke warm.
There were 74 single family sales this July which compares to 79 sales in July 2011. This is a “cooling off” of about 6% this year compared to last. July’s lower sales finally broke the streak of 4 straight months of higher sales in 2012 compared to 2011.
I attribute the cooling off of July sales to the tightened mortgage qualification rules which happened at the beginning of the month. Time will tell whether this will have a long term effect on home sales in the North Okanagan.
The key indicator of the number of single family homes on the market remains fairly flat at 785. We may yet see a last minute surge in August to take it over the 800 mark, but hopefully not. The monthly sales to listing ratio for July is 9% which is lower than June (11%). Single digit sales to listings in any month is not great for sellers and a drop of 2% month over month is not a good indicator. The Days on Market has climbed to 120 days for July sales, which is also not good for sellers. Looks like price, location, and condition are more important than ever for sellers who want to sell this year. Still an awesome time for Buyers or investors to jump in…
The median sold price for single family homes in July 2012 was $334,000 and the average sold price was $353,647.
How are house prices doing anyway?
Everyone is curious about house prices. If you are a Seller you are keen to know if your equity is increasing. If you are a Buyer you are keen to know if the home is a good buy. You will find below a graph of the single family home sale prices from 2008 through to the end of July 2012 (see below).
Average home sale prices in the North Okanagan have come down from $402,717 in 2008 to $367,353 in 2012 or about 9%. I also checked the average sold prices in 2007 and they were at $389,000 which is a bit higher than the 2009 – 2011 prices.
The median sold price was at $375,000 in 2008 and has slid about 9% also to about $340,000 in 2012. With 5 months left in the year there is a possibility that sold prices will rebound to 2011 levels. The July sales figures don’t support that though (see above). As always, time will tell…